The reference spot price sourced from oracle feeds (Pyth, Switchboard) used as the benchmark in derivatives trading. Index price represents the aggregate market price across major exchanges and is used to calculate funding rates and as a component of mark price. Accurate index prices are critical for fair liquidation and funding rate calculations in perps protocols.
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The reference spot price sourced from oracle feeds (Pyth, Switchboard) used as the benchmark in derivatives trading. Index price represents the aggregate market price across major exchanges and is used to calculate funding rates and as a component of mark price. Accurate index prices are critical for fair liquidation and funding rate calculations in perps protocols.
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AMMs, routing, liquidity, lending, and trading infrastructure.
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Index Price (index-price) Category: DeFi Definition: The reference spot price sourced from oracle feeds (Pyth, Switchboard) used as the benchmark in derivatives trading. Index price represents the aggregate market price across major exchanges and is used to calculate funding rates and as a component of mark price. Accurate index prices are critical for fair liquidation and funding rate calculations in perps protocols. Related: Oracle, Mark Price, Funding Rate, Pyth Network
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A service that provides external data (prices, randomness) to on-chain programs. DeFi protocols rely on oracles for accurate price feeds to calculate collateral ratios, liquidation thresholds, and swap rates. Solana's primary oracles are Pyth (high-frequency price feeds) and Switchboard (general-purpose data feeds and VRF).
The fair value price used by perpetual contract platforms to calculate unrealized PnL and trigger liquidations. Mark price is typically derived from a combination of the oracle index price and the order book or AMM mid-price, weighted to resist manipulation. Using mark price instead of last traded price prevents liquidation hunting through short-lived price spikes on thin markets.
A periodic payment exchanged between holders of long and short perpetual contract positions to keep the perp price anchored to the spot price. When the perp trades above spot (positive funding), longs pay shorts; when below spot (negative funding), shorts pay longs. Funding is typically settled every hour on Solana perps platforms like Drift and Jupiter Perps. High funding rates create arbitrage opportunities.
A high-frequency oracle network publishing price feeds for crypto, equities, commodities, and FX. Pyth aggregates data from 90+ first-party publishers (market makers, exchanges) and updates prices every 400ms on Solana. Each price feed includes a price, confidence interval, and exponential moving average. Pyth uses a pull model with Hermes for cross-chain delivery.
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The exponential moving average price published by Pyth alongside the spot price for each feed. EMA price smooths out short-term price spikes and is more resistant to manipulation than the instantaneous price. Lending protocols often use EMA prices for liquidation calculations to prevent unnecessary liquidations from brief price wicks. The EMA window is typically configured for several minutes of price history.
Lending pools where risk is contained to specific asset pairs or groups, preventing a depeg or exploit in one asset from affecting the entire protocol. Each isolated pool has its own risk parameters, interest rates, and collateral factors. On Solana, MarginFi and Kamino use isolated pool architectures so that volatile or newer tokens can be listed without exposing core assets like SOL and USDC to additional risk.
The fair value price used by perpetual contract platforms to calculate unrealized PnL and trigger liquidations. Mark price is typically derived from a combination of the oracle index price and the order book or AMM mid-price, weighted to resist manipulation. Using mark price instead of last traded price prevents liquidation hunting through short-lived price spikes on thin markets.
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A service that provides external data (prices, randomness) to on-chain programs. DeFi protocols rely on oracles for accurate price feeds to calculate collateral ratios, liquidation thresholds, and swap rates. Solana's primary oracles are Pyth (high-frequency price feeds) and Switchboard (general-purpose data feeds and VRF).
The fair value price used by perpetual contract platforms to calculate unrealized PnL and trigger liquidations. Mark price is typically derived from a combination of the oracle index price and the order book or AMM mid-price, weighted to resist manipulation. Using mark price instead of last traded price prevents liquidation hunting through short-lived price spikes on thin markets.
A periodic payment exchanged between holders of long and short perpetual contract positions to keep the perp price anchored to the spot price. When the perp trades above spot (positive funding), longs pay shorts; when below spot (negative funding), shorts pay longs. Funding is typically settled every hour on Solana perps platforms like Drift and Jupiter Perps. High funding rates create arbitrage opportunities.
A high-frequency oracle network publishing price feeds for crypto, equities, commodities, and FX. Pyth aggregates data from 90+ first-party publishers (market makers, exchanges) and updates prices every 400ms on Solana. Each price feed includes a price, confidence interval, and exponential moving average. Pyth uses a pull model with Hermes for cross-chain delivery.
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.