# Asset Pricing Methodology

### **Overview**

Aleno computes real-time asset prices by aggregating data from both decentralized exchanges (DEXs) and centralized exchanges (CEXs). The methodology prioritizes data reliability, liquidity depth, and market representativeness.

***

### **DEX Pricing**

**1. Pool Discovery**

* For each asset, Aleno fetches all available DEX pools across supported chains and retain only the ones with enough liquidity and volume.
* Only pools that pass initialization checks (via on-chain RPC queries) and protocol whitelisting are retained.

**2. Quote Asset Selection**

* Among all valid pools for the asset, Aleno identifies the pool(s) where the counterparty token (quote asset) has:
  * The **highest USD liquidity** (`usdTvl`)
  * Reliable price reference (e.g., stablecoins like USDC/USDT or blue chips like WETH/ETH).
* Pools with illiquid or volatile quotes are excluded.

**3. Liquidity-Weighted Pricing**

* For all selected pools (possibly across multiple chains), Aleno computes the price of the asset relative to the quote using pool reserves and volumes.
* Each price is **weighted by a combination of:**
  * Pool USD liquidity (`usdTvl`)
  * 24h USD trading volume (`h24UsdVolume`)
* The final DEX price is a **liquidity + volume weighted average** across all qualifying pools.

**4. Quote Normalization via Kraken**

* To convert token pairs into a consistent USD-denominated price (e.g., USDC → USD), Aleno uses Kraken's spot market rates as an external reference for major fiat-anchored assets. This normalization step ensures consistency across DEX pools regardless of base-quote pair configuration. For example, a pool quoted in USDC is translated into a USD price using Kraken’s real-time USDC/USD rate. This guarantees accurate aggregation and comparison of prices across heterogeneous liquidity sources.

***

### **CEX Pricing**

* Prices from multiple CEXs are fetched using aggregated market data.
* Each market is filtered by:
  * Matching `symbol/quote` pair (USD or USD-pegged)
  * Verified exchange support
* Aggregation is done via a **volume-weighted average** across available markets.

***

#### **Final Aggregated Price**

The final `aggregated.price` (as seen in `/v1/assets/ticker`) is computed as:

```ts
aggregatedPrice = weightedMean([dexPrice, cexPrice], weights = [dexVolume, cexVolume])
```

* `dexPrice` is the DEX-side weighted average across pools.
* `cexPrice` is the CEX-side volume-weighted average across markets.
* Weights are proportional to `h24UsdVolume`.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.aleno.ai/asset-pricing-methodology.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.