ii. Pricing

Mint/Redeem USDca Pricing

What pricing feed/oracle is used for the mint/redeem of USDca?

The price CAMP assigns to collateral or the received asset during minting/redeeming USDca **is a function of the liquidity available across connected pools of liquidity. This is determined primarily by an internal PMS system which evaluates the pricing of the hedge for the given collateral across our trading venues.

It’s important to keep in mind that CAMP in real-time performs continuous validation and sources pricing information from a number of different sources. These sources include CeFi exchanges, DeFi exchanges, OTC markets as well as oracle providers such as Pyth and RedStone. There are a large number of validations throughout the system to ensure that if errant data is ingested or the system produces an unreasonable pricing value, the protocol does not offer that price to the user. Back-up oracle feeds provide an additional layer of safety in this regard.

How do you ensure the pricing is correct?

CAMP's systems ingest pricing information from several sources across CeFi, DeFi, and OTC markets. The portfolio management system, responsible for pricing, treats all externally obtained data as such and only accepts it as input after passed validations such as: having both a bid and ask side, minimum amount of quantity and max allowed spread. When performing aggregations, prices with a larger than allowed relative distance to the median gets left out. The price is again sanity-checked by a different application, comparing it to an external third party oracle prices including Pyth and RedStone, before being sent to the requesting user.

Is there a backup pricing feed/oracle for the system’s pricing?

Yes, These sources include CeFi exchanges, DeFi exchanges, OTC markets as well as oracle providers such as Pyth and RedStone. The system is never dependent upon a single pricing feed source or collection of sources.

The protocol retains the ability to automatically pause minting/redeeming USDca to mitigate any risk to the protocol.

How do you prevent exchange price feed manipulation?

As a part of ingesting data from a number of sources including CeFi exchanges, DeFi exchanges, OTC markets as well as oracle providers such as Pyth and RedStone, we validate that the data received is correct and is within relative error bands to alternative streams.

In many cases, the protocol ingests the data directly from the source in a secure manner. A single pricing feed is never relied upon in isolation & is constantly monitored for validity relative to alternatives.

The protocol retains the ability to automatically pause minting/redeeming USDca to mitigate risk to the protocol.

What happens when an exchange price feed is clearly incorrect?

In short, the data is excluded from pricing calculations. Given a single pricing feed is never relied upon in isolation and is constantly validated against multiple unique sources, the system is able to exclude a specific feed & to adjust operations internally immediately.

The protocol retains the ability to automatically pause minting/redeeming USDca to mitigate risk to the protocol.

What happens if the pricing server stops functioning?

In the event all of CAMP’s internal pricing services fail for any reason, the ability to mint/redeem USDca **is immediately disabled to mitigate risk to the protocol. It is not possible for internal pricing services to be unavailable while the mint/redeem functionality is operational.

The underlying backing of USDca is generally resilient if the pricing server is unavailable for a period of time given the backing & hedges remain in place, though the market price may fluctuate.

CAMP’s internal services do not all exist and operate from a single data centre or geographic location. CAMP utilizes 3 separate data center locations for servers. In the event a data center or region becomes unavailable, the system would rely upon services that exist within a different region without delay.