Fundamental Feeds provide an alternative to market-based pricing by calculating an asset’s value directly from its fundamentals. Instead of relying on exchange trades or liquidity-driven mechanisms, these feeds derive price from objective on-chain or off-chain proofs of collateral, redemption logic, and reserve holdings. This makes them particularly relevant for synthetic assets, stablecoins, yield-bearing tokens, and structured vaults.

​
Features

  • Independent of market volatility or liquidity distortions.
  • Transparent methodology based on verifiable reserves, liabilities, and contract logic.
  • Applicable across DeFi instruments ranging from liquid staking tokens to stablecoins and vaults.

​
Methodologies

​
Contract Exchange Rate

For tokens with built-in exchange logic (e.g. stETH, aUSDC, cDAI), price is calculated from the ratio of underlying assets to total shares: exchangeRate=totalUnderlying/totalSharesexchangeRate = totalUnderlying / totalShares

​
Reserve-Backing

For collateral-backed assets, reserves are divided by circulating supply to produce a backing-based fundamental value: fundamentalPrice=reserves/supplyfundamentalPrice = reserves / supply Reserves may consist of multiple assets held across wallets.

​
Net Asset Value (NAV)

For vault-based tokens, price equals the value of assets minus liabilities, divided by outstanding tokens: fundamentalPrice=(assets−liabilities)/totalSupplyfundamentalPrice = (assets - liabilities) / totalSupply

​
Redemption Value

For mint/burn models, the fundamental value corresponds to the amount of underlying assets received when redeeming one token. This is typically retrievable directly from the redemption contract.

​
Proof of Reserves

For custodial or synthetic assets, feeds can publish the total value of reserves as reported by verified custodians or proof-of-reserve attestations: reserveValue=∑i=1n(reservesi×pricei)reserveValue = \sum_{i=1}^{n} (reserves_i \times price_i)

​
Architecture Flow Overview

Fundamental Feed Flow

  • Each feeder is pulling balance sheets (reserves, supply).
  • Lasernet is the ledger where all feeders submit their reports.
  • The aggregator contract is consolidating those reports into one official number.
  • The messaging layer is delivering that number to every chain where it’s needed.
  • Protocols then rely on this official number to decide risk and operations.

​
Use Cases

  • Stablecoins: Validate peg integrity by comparing market price to backing-based fundamental value.
  • Yield-bearing Tokens (LSTs, aTokens, cTokens): Track accruing value through exchange rates.
  • Vaults and Structured Products: Monitor NAV in real time to ensure accurate token pricing.
  • Synthetic Assets: Ensure collateralization ratios remain healthy through reserve-backed valuations.

​
Developer Notes

Fundamental Feeds can operate alongside traditional market price feeds. Protocols can consume both sources to implement safeguards such as:
  • Depeg monitoring (triggering alerts if fundamental value diverges from market price).
  • Fallback mechanisms to fundamental pricing when market feeds become unreliable.
  • Enhanced transparency by exposing raw inputs such as reserve addresses or contract state.