OKX Implements Price Protection for RWA Token Index Amid Market Volatility
OKX, a leading cryptocurrency exchange, is set to activate a price protection mechanism for its Real-World Asset (RWA) token index on November 6, 2025. This strategic move is designed to mitigate potential market risks associated with the RWA token, according to OKX.
### Mechanism Details
The price protection mechanism will use a clamping method to restrict the RWA token index’s final price within a specific range. The formula employed is:
**RWA token index final price = Clamp [RWA token index price, corresponding real-world asset price × (1 − X), corresponding real-world asset price × (1 + X)]**
This ensures the index price remains within a calculated boundary, safeguarding it from excessive volatility.
For instance, using the XAUT/USD index where the parameter *X* is set at 10%, the index price is computed using a weighted average of prices from different exchanges. If the real-world asset price (XAU/USD) is $4,200, and the index price reads $2,922.5, the price would be clamped within the range of $3,780 to $4,620. This means the final price will be set at the lower boundary of $3,780, preventing the index price from moving too far outside the expected range.
### Data Sources and Flexibility
OKX will acquire real-world asset prices from multiple data providers to ensure accuracy and reliability in the index calculation. Currently, the price protection is enabled for the XAUT/USDT and XAUT/USD indices, with the threshold parameter *X* set at 10%.
Depending on evolving market conditions, OKX may extend this protection to other RWA indices, adjust parameters, or even disable the protection mechanism without prior notice.
### Conclusion
This development comes amid increasing interest in tokenized real-world assets, which blend traditional financial instruments with blockchain technology. The introduction of a price protection mechanism reflects OKX’s commitment to maintaining market stability and protecting investors from undue risk.
*Image source: Shutterstock.*
https://Blockchain.News/news/okx-implements-price-protection-rwa-token-index
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