What is De-Peg & Tracking Error?
Glossary · Pricing
A de-peg (or tracking error) is when a tokenized asset's price drifts away from the value of the share or fund it represents. Small, temporary gaps are normal NAV premium or discount; a sustained, large divergence is a de-peg and can signal liquidity, oracle, or backing stress.
Why tokenized stocks de-peg
Common causes include oracle latency (the on-chain price lagging the real market), thin liquidity on the venue where the token trades, the underlying stock market being closed while the token keeps trading, mint-and-redeem windows being paused, or a loss of confidence in the backing. Most divergences are small and self-correct through arbitrage; a large, persistent one is the warning sign.
How to monitor a de-peg
The reliable way to spot a de-peg is to compare the token's on-chain price against its NAV and against several independent oracles — for example Pyth and Chainlink — at once. A divergence that shows up across multiple independent sources is a far stronger signal than a single feed moving. TxOnChain's multi-oracle consensus view is built to surface exactly this.
Frequently asked questions
What is the difference between a NAV premium and a de-peg?
A premium or discount is the normal, usually small gap between a token's price and its NAV. A de-peg is a large, persistent break from NAV that signals a structural problem rather than routine supply and demand.
Related terms
- NAV Premium & Discount — NAV premium (or discount) is the gap between a tokenized asset's on-chain market price and its net asset value (NAV) — the value of the underlying share or fund.
- Multi-Oracle Pricing — Multi-oracle pricing values a tokenized asset by comparing several independent price feeds — such as Pyth, Chainlink, the issuer's published NAV, and the on-chain market price — instead of trusting one source.
- Tokenized Equity — A tokenized equity is a blockchain token that represents ownership of, or economic exposure to, a real company share.
Informational only · not financial advice. See the live data on the newsroom. · ← All glossary terms