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- On August 1, Chainlink rolled out State Pricing, a new way to price assets that trade across both DEXs and CEXs.
- It’s the latest addition to Chainlink’s suite of pricing methods, joining tools like volume-weighted average pricing and liquidity-weighted bid/ask pricing.
Chainlink has officially launched State Pricing on mainnet, offering it in two ways: as a push-based oracle through Chainlink Data Feeds and as a pull-based option via Chainlink Data Streams. The rollout already supports assets like wstETH, GHO, LBTC, cbBTC, ezETH, tBTC, and more, with plans to keep adding new tokens, chains, and DEXs based on what users need.
Leading DeFi protocols like Aave, Lido, GMX, and Curve are already integrating State Pricing to improve how they source on-chain prices.
Michael Egorov, founder of Curve, shared his excitement:
Chainlink State Pricing builds on an idea we tested at Curve and scales it to all DEXs, bringing us closer to a world where all liquidity can safely move on-chain. I’m thrilled to see Chainlink ready to support this major shift, which is already happening.
Problem Being Solved
According to its blog, some tokens don’t see much action on big centralized exchanges, things like niche DeFi assets or tokenized real-world assets. Instead, they mostly trade on decentralized exchanges or just have low overall trading volume, even if there’s decent liquidity locked on-chain.
That makes their prices unreliable if you’re only looking at standard exchange feeds. Often, this happens because the token is new to the market and hasn’t been listed on major exchanges yet, or simply because it serves a specialized purpose that keeps trading activity limited.
Another issue is that pricing tokenized real-world assets (RWAs) isn’t as straightforward as just matching them to the value of what they represent, like cash or fund shares, because they only trade on-chain. Their price has to reflect real on-chain activity and liquidity, not just a fixed peg.
After all, things like dividend payouts, redemption risks, or market shifts can make the token’s value move differently from the underlying asset.
On top of that, sudden market moves like flash loans or MEV attacks can throw prices way off. That’s where Chainlink’s new State Pricing comes in.
It works alongside Chainlink’s existing pricing methods, like volume-weighted averages, liquidity-based spreads, and hybrid models that mix on-chain and off-chain data, to give a more flexible and reliable way to price assets based on how they actually trade and behave on-chain.
What’s the State Price?
State Pricing works by pulling prices straight from on-chain liquidity pools, kind of like checking the “mid-price” in an order book. The cool thing is it gives you a price even when a token hasn’t traded recently, which is a big deal for assets with low activity.
It does this by looking at multiple pools across different DEXs and chains, picking the ones with the most liquidity and volume, and then filtering out any weird data spikes caused by things like flash loans or MEV attacks.
From there, it takes snapshots at the end of each block, applies models built for specific protocols like Uniswap V3 or stableswap, and converts everything into USD using reliable benchmarks and Chainlink Data Streams. On top of all that, it constantly monitors trends and applies security checks to make sure short-term manipulation doesn’t throw the price off.
Chainlink now gives developers two ways to access pricing data: a push-based model using Chainlink Data Feeds for real-time updates, and a pull-based model with Chainlink Data Streams for on-demand queries. This flexibility means long-tail assets can be priced up to 30% more accurately while cutting volatility spikes and slippage by 25%.
The result? Smoother trades, better market transparency, smarter liquidity management, and less risk of manipulation. Thanks to this, platforms like Aave and other DeFi protocols can safely support an even wider range of assets that trade primarily on DEXs.
