> For the complete documentation index, see [llms.txt](https://docs.goevolve.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.goevolve.xyz/defi-integration/price-oracle.md).

# Price Oracle

### For Lending Markets

Lending markets need a reliable price oracle to value collateral accurately, enforce LTV limits, calculate health factors, and trigger liquidations safely. **eUSD** is designed to be a first-class collateral asset on SEI DeFi, so it exposes an **onchain price feed** that tracks eUSD’s underlying reference value and can be consumed directly by lending protocols or via adapter contracts.

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#### Pricing methodology

eUSD tracks a **reference value** that reflects the economic value of its underlying sleeves and performance (**net of applicable fees**). As this reference value changes, the oracle updates the price so eUSD’s onchain price follows the same source of truth used for product accounting and reporting.

To strengthen transparency, Evolve uses a **proof-of-reserve / proof-of-backing oriented design** for the oracle infrastructure where feasible:

* When assets or collateral sit **offchain**, independent third parties may verify balances and provide **attestations**.
* This provides additional assurance that underlying collateral supports the token’s reference value (subject to the scope and limitations of the attestation).

For canonical settlement, eUSD can process mint/redemption using a **designated reference price** consistent with the product’s NAV methodology and processing rules, so issuance/redemption aligns with the same accounting reference that integrations rely on.

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#### Oracle interface (Chainlink-compatible)

eUSD implements a Chainlink-style interface via:

* `latestRoundData()` → returns `(roundId, answer, startedAt, updatedAt, answeredInRound)`

This enables:

* standard oracle plumbing for integrations
* staleness checks using `updatedAt`
* compatibility with common DeFi oracle adapter patterns

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#### NAV-based pricing (ERC-4626 semantics)

For direct valuation of shares against underlying assets:

* `convertToAssets(uint256 shares)` → pass `1e18` shares to get the underlying asset amount implied by NAV (i.e., “price per token” in asset units).

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#### Simplified rate read

For protocols that want a single standardized value:

* `getRate()` → returns the current price/rate in **18 decimals**.

Together, these functions provide a transparent, reference-driven oracle that lending markets can depend on for consistent collateral valuation and risk management.

{% hint style="info" %}
**Important notes & disclaimers**

* The oracle price and related verification procedures are provided **for reference and risk management purposes**.
* eUSD is structured via a **bankruptcy-remote segregated vault structure**; oracle outputs do not, by themselves, create any additional legal entitlement beyond what is defined in the product terms.
* **Redemption amounts are determined by the product’s disclosed reference methodology and processing rules** (including any queue/epoch mechanics) and may differ from the oracle reference in certain scenarios.
* Always review the applicable **legal documents, product terms, and risk disclosures**.
  {% endhint %}