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RMMs and Oracles

Pool-derived pricing, external information and settlement authority.

#Oracle-minimized is not oracle-free

RMM research lets arbitrage import external price information through trades rather than letting a feed set the pool's marginal price directly. Arbitrageurs still observe external markets, and other protocol functions can require authoritative data.

#Distinct price surfaces

  • Underlying-equity bid and ask data describes the reference security market.
  • A Stock Token Chainlink feed reports an onchain, multiplier-adjusted token price.
  • A pool marginal price describes immediately tradable reserve state.
  • A settlement observation applies the position's terminal rule.

These values can differ in role, timing and executability. A sound architecture never treats them as interchangeable.

#Pricing versus settlement

Pool state can price execution while a feed enforces risk bounds or settlement. Conversely, a feed can value a position without supplying executable liquidity.

  1. Replicating Market Makers

    Angeris, Evans and Chitra's primary paper on constructing CFMM trading functions from target payoff functions.

  2. Stock Token APIs

    Official REST schemas for asset metadata, underlying bid/ask data and corporate actions.

  3. Oracles & Price Feeds

    Official Chainlink feed semantics, multiplier treatment, pause behavior and L2 safety checks.

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