What is Multi-Oracle Pricing?
Glossary · 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. Agreement across oracles signals a reliable price; divergence flags risk or a potential de-peg.
How a tokenized asset gets its price
Three inputs matter. The issuer's NAV is the reference 'fair' value of the underlying share or fund. The market price is what the token actually trades at on-chain. Oracle feeds — Pyth for low-latency market data and Chainlink for on-chain reference and proof-of-reserve — publish prices that smart contracts and dashboards consume. A strong consensus is when these agree within a tight band.
Why one oracle is not enough
Any single feed can lag, be thinly sourced, or break. Cross-checking several independent oracles catches a bad print early: if one source diverges from the others beyond a set threshold, the consensus is weak and the price is treated as suspect. This is the core idea behind TxOnChain's multi-oracle consensus engine.
Frequently asked questions
What is oracle divergence?
Oracle divergence is the percentage gap between independent price feeds for the same asset. When the maximum divergence rises above a set threshold, the consensus is considered weak and the price unreliable.
Which oracles price tokenized stocks?
Commonly Pyth and Chainlink for market reference, alongside the issuer's published NAV. Using more than one independent source is what makes the resulting price robust.
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.
- De-Peg & Tracking Error — 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.
- 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