Oracle for BNB & WBNB Price

Learn more about the Sigma Oracle mechanism.

The Sigma Oracle mechanism for BNB (WBNB)/USD combines multiple data sources — including Chainlink and Binance Oracle — to calculate both spot prices and an anchor price. It defines Max and Min Prices for WBNB/USD based on these sources, and applies a governance-adjustable threshold (default: 2%) to determine whether to rely on the Anchor Price or the Max/Min Price for operations such as levaraging, rebalancing, minting, redeeming, etc.

This design ensures accurate and stable pricing while accommodating short-term market fluctuations.

BNB/USD Spot Oracles

WBNB/USD Anchor Price Oracle

Algorithm for Max and Min Prices

  • Max Price:

    WBNB/USD Price = max(Anchor Price, [Spot Max Price])

  • Min Price:

    WBNB/USD Price = min(Anchor Price, [Spot Min Price])

Price Checking Mechanism

  • If the difference between Anchor Price and Max/Min Price exceeds the governance threshold (default: 2%), the system defaults to Anchor Price.

  • Otherwise, Max/Min Price is applied depending on the operation type.

Conclusion

  • xPOSITIONs and mint-xPOSITIONs

    • Min Price is used for open/close risk control, rebalancing, and liquidation, provided the deviation from Anchor Price ≤ threshold.

    • Otherwise, Anchor Price is applied.

  • sPOSITIONs

    • Max Price is used for open/close risk control, rebalancing, and liquidation, provided the deviation from Anchor Price ≤ threshold.

    • Otherwise, Anchor Price is applied.

    • Min Price is used for redeeming sPOSITIONs when the system lacks sufficient long-collateral reserves to meet xPOSITION closing and risk-management needs.

  • bnbUSD Redemption

    • Max Price is used for redeeming bnbUSD, provided deviation ≤ threshold.

    • Otherwise, Anchor Price is applied.

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