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.

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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.

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Methodologies

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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: $$exchangeRate = totalUnderlying / totalShares$$ Use case: Price liquid staking and yield-bearing tokens from their on-chain exchange rate, so lending markets value them by what they redeem for rather than thin DEX prices.

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Reserve-Backing

For collateral-backed assets, reserves are divided by circulating supply to produce a backing-based fundamental value: $$fundamentalPrice = reserves / supply$$ Reserves may consist of multiple assets held across wallets. Use case: Value collateral-backed stablecoins and wrapped assets by their verified reserve backing, giving vaults a manipulation-resistant collateral price.

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Redemption-Capped Valuation

Many collateral-backed tokens, particularly stablecoins and over-collateralized synthetic assets, include protocol-level redemption mechanisms that cap the redeemable value per token. For these tokens, the fundamental price is calculated as: $$fundamentalPrice = min(reserves / supply, 1) \times redeemableValuePerToken$$ Use case: Cap an over-collateralized stablecoin or synthetic asset at its redeemable value, preventing overvaluation when the market price rises above par.

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Net Asset Value (NAV)

For vault-based tokens, price equals the value of assets minus liabilities, divided by outstanding tokens: $$fundamentalPrice = (assets - liabilities) / totalSupply$$ Use case: Price tokenized funds, vaults, and structured products from their real-time NAV, so share tokens track the value of the underlying portfolio.

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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. Use case: Price mint/burn assets at their on-chain redemption value. This is ideal for wrapped tokens and 1:1 redeemable instruments.

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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: $$reserveValue = \sum_{i=1}^{n} (reserves_i \times price_i)$$ Use case: Publish verified reserve value for custodial or wrapped assets, letting protocols confirm backing and automate risk logic (e.g. pausing on under-collateralization).

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Architecture Flow Overview

• 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.

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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.

If you’re interested in integrating Fundamental Feeds into your project, request a custom oracle below: