How Does a Reference Rate Differ from a Standard Market Price Feed? ⎊ Path

How Does a Reference Rate Differ from a Standard Market Price Feed?

A standard market price feed provides real-time, often last-traded, prices from a single exchange. A reference rate, however, is a calculated, often time-weighted, value aggregated from multiple exchanges over a specific period.

It is designed to be a robust, non-manipulable benchmark, unlike a single, instantaneous market price.

Is the Premium Index Calculated in Real-Time?

Are There Alternatives to TWAP That DeFi Protocols Use for Robust Price Feeds?

How Does a ‘Data Feed’ Differ from a Single API Call?

What Are the Limitations of Using Only a Single Benchmark (Like TWAP) for Evaluating Execution Quality?

What Are the Limitations of the Standard Impermanent Loss Formula in Multi-Asset or Weighted Liquidity Pools?

What Is the Concept of a ‘Reference Rate’ in Cryptocurrency Markets?

How Is the “Aggregated Price” Determined by an Oracle Network from Multiple Sources?

How Does a Reference Rate Differ from the Last Trade Price on a Futures Exchange?

Glossar

Market Price Feed

Feed ⎊ The market price feed is the continuous, real-time stream of transactional data, including bid, ask, and last-sale prices, aggregated from various trading venues and delivered to a consumer, such as a quantitative trading algorithm or a decentralized finance protocol.

Reference Rate

Benchmark ⎊ Reference Rate is the established, observable interest rate or index used as the basis for calculating floating payments, margin requirements, or funding costs within a financial contract, particularly for derivatives referencing time value.