Chainlink Launches State Pricing to Boost DeFi Asset Valuation Security

Chainlink has launched a novel pricing methodology known as State Pricing, designed to improve the valuation of crypto and tokenized assets primarily traded on decentralized exchanges (DEXs). The solution leverages liquidity reserves within onchain DEX pools to derive accurate and continuous price data, offering a more secure and reliable alternative to traditional pricing models. This initiative is expected to strengthen the resilience of DeFi protocols and expand the range of assets they can support [1].

Unlike conventional volume-weighted or bid/ask pricing models, State Pricing calculates asset values based on liquidity reserves in selected DEX pools, ensuring a continuous and transparent price reference without reliance on centralized exchange data. The method is particularly effective for assets with limited trading activity on centralized platforms but significant liquidity onchain, reducing susceptibility to manipulation and flash loan attacks [1].

At launch, Chainlink State Pricing supports assets such as wrapped stETH (wstETH), Aave’s stablecoin GHO, and Coinbase wrapped Bitcoin (cbBTC). These assets have been integrated into major DeFi protocols, including Aave, Curve, Lido, and GMX, which are utilizing the solution to enhance pricing accuracy and security. Ernesto Boado, co-founder of BGD Labs, noted that the innovation enables Aave to broaden its support for DEX-traded assets while maintaining high reliability standards [1].

Developers can access State Pricing through Chainlink’s Data Feeds and Data Streams, which offer both push-based and pull-based oracle solutions. This flexibility facilitates seamless integration into various decentralized applications, allowing for enhanced price data accuracy and improved risk management [1].

The introduction of State Pricing is a critical development for decentralized finance, where reliable onchain price references are often lacking. By deriving prices from actual liquidity reserves rather than transient trade volumes or order book data, the method offers a tamper-resistant and secure pricing mechanism. This is especially important for DeFi platforms managing risk and liquidity, as it provides a more stable foundation for smart contract execution [1].

Chainlink’s announcement, made on August 1, highlights the growing need for robust pricing infrastructure tailored to decentralized markets. As adoption of State Pricing expands, it is expected to play a pivotal role in the continued development and maturation of the DeFi ecosystem, offering protocols greater confidence and flexibility in managing tokenized assets [1].

Source: [1] Chainlink Introduces State Pricing to Enhance Onchain Asset Valuation on Decentralized Exchanges (https://en.coinotag.com/chainlink-introduces-state-pricing-to-enhance-onchain-asset-valuation-on-decentralized-exchanges/)