How IFÁ Aggregates Prices

IFÁ Labs uses a robust, multi-step aggregation process to ensure that onchain price feeds are accurate, manipulation-resistant, and reflective of true market conditions — especially for stablecoins where even small deviations matter.

The Aggregation Pipeline

The process flows as follows:

1. Data Collection Prices are pulled from a diverse set of high-quality sources, including:

   • Major centralized exchanges (CEXs)

   • Decentralized exchanges (DEXs) and liquidity pools

   • Reliable forex and fiat on-ramps for local stablecoins

   Multiple sources prevent reliance on any single point of failure.

2. Normalization & Cleaning Raw prices are normalized to a common format (USD-denominated, scaled consistently). Obvious errors or incomplete data are discarded.

3. Outlier Detection & Removal Statistical methods identify and exclude anomalous values:

   • Prices deviating significantly from the median

   • Sources with known temporary issues

   This step is particularly tuned for stablecoin behavior, where large swings are rare and often indicative of errors.

4. Consensus Calculation The final price is computed using a weighted median or weighted average (depending on asset characteristics):

   • Higher weights to more liquid, reputable sources

   • Median preferred for added manipulation resistance

5. Validation & Signing The aggregated price undergoes final checks (e.g., within expected peg bounds for stablecoins). Decentralized relayers sign the update.

6. Onchain Submission The verified price is pushed to the oracle contract on supported chains (e.g., Base), updating the stored value and timestamp.

Why This Approach Works for Stablecoins

• Low Volatility Tolerance — Aggregation logic prioritizes consistency over rapid swings.

• Emerging Market Sources — Includes regional exchanges and fiat gateways critical for local stablecoins like cNGN or BRZ.

• Decentralized Relayers — No single entity controls updates, maintaining trustlessness.

The result: Prices that are highly reliable, verifiable onchain, and optimized for the unique needs of stablecoin ecosystems.

Next: Explore Data Sources & Verification for deeper insight into source selection and security.