Astral Index Price Protection Mechanism aims to ensure the accuracy and stability of index prices. Here is a detailed description of the mechanism:
1. Connection Time Limit:
- If the price of a constituent exchange is not updated within 10 seconds, the weight of that exchange will be reduced to zero when calculating the index price.
- If the constituent exchange updates its price within 10 seconds, the weight will be restored.
2. Treatment of Constituent Exchange Prices:
a. For a quantity of constituent exchanges ≥ 2:
i. If the price of a constituent exchange differs from the median price of the index by more than 10%, it will be removed from the index calculation.
ii. If the price of a constituent exchange crypto differs from the median price by more than 5%, the price will be adjusted to be within a 5% range. Once the price difference is below 5%, the index will be updated.
b. For a quantity of constituent exchanges = 1:
i. If the price of a constituent exchange crypto differs from the platform's crypto price by more than 10%, the price of that exchange will be excluded.
ii. Subsequently, the index price will follow the platform's crypto price based on the final calculated index price.
3. Recall and Non-Following of Constituent Exchange Prices:
If the following conditions are met continuously for 5 minutes, the excluded constituent exchanges will be reintroduced into the index calculation:
- For constituent exchanges with 2 or more remaining active exchanges that were excluded based on conditions "2.a.i" or "2.a.ii", their prices must be within 3% of the median price of the remaining active constituent exchanges.
- For the case of only 1 remaining active constituent exchange that was excluded based on condition "2.b.i", it will not be recalled.
Through the above mechanism, the Astral Index Price Protection Mechanism aims to ensure the accuracy of index prices and adjusts the weights and prices of constituent exchanges based on specific conditions, providing stable and reliable index data.