Pricing Operator

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Overview

The Pricing Operator plays a critical role in the FRAG-22 ecosystem by ensuring accurate, reliable, and timely updates of asset valuations. Accurate pricing directly impacts normalized token valuation, redemption fairness, and overall asset management within the system.

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Responsibilities and Operations

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1. Asset Valuation Updates

The Pricing Operator periodically updates the valuation of underlying assets within the Normalized Token Pool using integrated pricing sources.

Core Functions:

• Trigger Valuation Updates: Regularly initiate asset valuation procedures.
• Integrate Pricing Sources: Use predefined external pricing sources to ensure precise asset valuations.

Process Overview:

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2. Maintaining Exchange Ratios

The Pricing Operator maintains accurate exchange ratios between normalized tokens and underlying assets, ensuring fair and transparent redemption processes.

Core Functions:

• Calculate Exchange Ratios: Dynamically calculate normalized token valuations based on the updated asset prices.
• Adjust Valuations: Continuously monitor and adjust valuations to reflect market conditions accurately.

Process Overview:

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3. Pricing Data Integrity

Ensures data integrity and consistency across the FRAG-22 system by verifying and validating pricing sources regularly.

Core Functions:

• Data Verification: Regularly verify pricing data from multiple integrated sources.
• Ensure Consistency: Maintain consistency and transparency in reported valuations.

Process Overview:

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Permissions and Access

Pricing Operators have the following clearly defined authorities:

• Valuation Update Authority:

  • Explicitly authorized to initiate asset valuation updates via integrated pricing sources.

• Implicit Exchange Ratio Adjustment:

  • Indirectly influences exchange ratios by updating underlying asset valuations. Exchange ratio adjustments are automatically computed by the system.

Note: Pricing data integrity checks are automatically managed by the system internally and do not require explicit operator oversight.

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Importance in FRAG-22

The Pricing Operator ensures critical valuation accuracy, directly influencing normalized token fairness, reward calculations, and system trustworthiness, which are essential to the reliability and overall success of the FRAG-22 ecosystem.