> ## Documentation Index
> Fetch the complete documentation index at: https://www.diadata.org/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Fundamental Feeds

> Derive asset values from their fundamentals rather than market prices. Ideal for stablecoins, synthetic assets, and yield-bearing tokens.

Fundamental Feeds provide an alternative to market-based pricing by calculating an asset's value directly from its fundamentals. Instead of relying on exchange trades or liquidity-driven mechanisms, these feeds derive price from objective on-chain or off-chain proofs of collateral, redemption logic, and reserve holdings.

This makes them particularly relevant for synthetic assets, stablecoins, yield-bearing tokens, and structured vaults.

# Features

* Independent of market volatility or liquidity distortions.
* Transparent methodology based on verifiable reserves, liabilities, and contract logic.
* Applicable across DeFi instruments ranging from liquid staking tokens to stablecoins and vaults.

# Methodologies

## Contract Exchange Rate

For tokens with built-in exchange logic (e.g. stETH, aUSDC, cDAI), price is calculated from the ratio of underlying assets to total shares:

$$
exchangeRate = totalUnderlying / totalShares
$$

**Use case:** Price liquid staking and yield-bearing tokens from their on-chain exchange rate, so lending markets value them by what they redeem for rather than thin DEX prices.

## Reserve-Backing

For collateral-backed assets, reserves are divided by circulating supply to produce a backing-based fundamental value:

$$
fundamentalPrice = reserves / supply
$$

Reserves may consist of multiple assets held across wallets.

**Use case:** Value collateral-backed stablecoins and wrapped assets by their verified reserve backing, giving vaults a manipulation-resistant collateral price.

### Redemption-Capped Valuation

Many collateral-backed tokens, particularly stablecoins and over-collateralized synthetic assets, include protocol-level redemption mechanisms that cap the redeemable value per token. For these tokens, the fundamental price is calculated as:

$$
fundamentalPrice = min(reserves / supply, 1) \times redeemableValuePerToken
$$

**Use case:** Cap an over-collateralized stablecoin or synthetic asset at its redeemable value, preventing overvaluation when the market price rises above par.

## Net Asset Value (NAV)

For vault-based tokens, price equals the value of assets minus liabilities, divided by outstanding tokens:

$$
fundamentalPrice = (assets - liabilities) / totalSupply
$$

**Use case:** Price tokenized funds, vaults, and structured products from their real-time NAV, so share tokens track the value of the underlying portfolio.

## Redemption Value

For mint/burn models, the fundamental value corresponds to the amount of underlying assets received when redeeming one token. This is typically retrievable directly from the redemption contract.

**Use case:** Price mint/burn assets at their on-chain redemption value. This is ideal for wrapped tokens and 1:1 redeemable instruments.

## Proof of Reserves

For custodial or synthetic assets, feeds can publish the total value of reserves as reported by verified custodians or proof-of-reserve attestations:

$$
reserveValue = \sum_{i=1}^{n} (reserves_i \times price_i)
$$

**Use case:** Publish verified reserve value for custodial or wrapped assets, letting protocols confirm backing and automate risk logic (e.g. pausing on under-collateralization).

# Architecture Flow Overview

<Frame caption="Fundamental Feed Flow">
  <img src="https://mintcdn.com/diadata/Ng3zDrRz-hX7CP86/images/data-products-and-tools/fundamental-feeds.png?fit=max&auto=format&n=Ng3zDrRz-hX7CP86&q=85&s=e5ecd560cd536e7e809a16720b0f73cb" alt="" width="2360" height="1164" data-path="images/data-products-and-tools/fundamental-feeds.png" />
</Frame>

* Each feeder is pulling balance sheets (reserves, supply).
* Lasernet is the ledger where all feeders submit their reports.
* The aggregator contract is consolidating those reports into one official number.
* The messaging layer is delivering that number to every chain where it's needed.
* Protocols then rely on this official number to decide risk and operations.

# Developer Notes

Fundamental Feeds can operate alongside traditional market price feeds. Protocols can consume both sources to implement safeguards such as:

* Depeg monitoring (triggering alerts if fundamental value diverges from market price).
* Fallback mechanisms to fundamental pricing when market feeds become unreliable.
* Enhanced transparency by exposing raw inputs such as reserve addresses or contract state.

If you're interested in integrating Fundamental Feeds into your project, request a custom oracle below:

<CardGroup>
  <Card title="Request a Custom Oracle" icon="angle-right" iconType="solid" horizontal href="/docs/guides/how-to-guides/request-a-custom-oracle" />
</CardGroup>