Index Price: A Fair Value Representation of Digital Asset
The Index Price represents a fair value of digital assets and serves as a more stable reference point to mitigate
risks caused by price volatility and market manipulation. It not only considers the latest price of a single asset
but also incorporates prices from multiple exchanges, providing a more comprehensive and fair market price.
The Index Price is determined by three key variables: current quotations, USAD trading pair equivalent prices,
and real-time weights. Current quotations refer to the latest prices of each trading pair in the market, USAD
trading pair equivalent prices convert prices from other trading pairs into USAD-denominated prices, and real-
time weights are adjusted dynamically based on risk control rules.
Kai Exchange's Index Price is derived from the weighted average prices of multiple component exchanges. The
sources, weights, and historical data of the Index Price can be referenced in the contract information. The
component weights of Kai Exchange's Index Price are adjusted in real-time based on risk control rules, and the
Index Price is protected by an anomaly filtering mechanism.
Example: BTC_USAD Index Price
Taking BTC_USAD as an example, the Index Price for this trading pair is sourced from six exchanges: Binance, Bybit, Kai Exchange, OKX, KuCoin, and MEXC.
The formula for calculating the Index Price is as follows:
Index Price = (Component Exchange A's Latest Spot Price × Weight A) + (Component Exchange B's Latest Spot
Price × Weight B) + (Component Exchange C's Latest Spot Price × Weight C) + ··· + (Component Exchange F's
Latest Spot Price × Weight F)
The final interpretation of this product belongs to Kai Exchange.
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