Traditional benchmarks like LIBOR rely on opaque, centralised submissions. As DeFi grows, the onchain economy needs transparent, verifiable reference rates derived directly from onchain market activity.
These rates enable accurate benchmarking for institutional lending, pricing of onchain derivatives, risk-adjusted return calculations and more.
Onchain Reference Rate (OCRR) is a real-time benchmark that measures the dollar-pegged base rate in onchain markets by aggregating yields from major, instant redemption, stablecoin lending protocols across multiple blockchains.
OCRR aggregates lending rates from major DeFi protocols across six blockchains, capturing a comprehensive view of the onchain dollar-pegged, instant redemption, rate landscape.
For each lending pool, we query smart contracts directly to retrieve current supply APYs for USDC and USDT. This ensures data authenticity. It's important to us that rates are pulled from the source of truth, not intermediaries.
Not all lending pools are suitable for a benchmark. We apply rigorous filters to ensure OCRR reflects rates from liquid, established markets.
After filtering, approximately 50+ pools remain in the eligible universe, representing over $10 billion in aggregate TVL across the onchain economy.
Larger pools contribute more to the final rate, but we use square-root of TVL weighting to prevent dominance by a single massive pool. This balances representativeness with diversification.
One massive pool dominates
Better diversification
Formula: Weighti = √TVLi / Σ√TVLall
The square root transformation prevents any single large pool from dominating the benchmark,
while still giving larger pools proportionally more influence than smaller ones.
The weights are normalised to sum to 100%. We also apply a concentration cap to ensure no single pool can exceed 35-50% weight, maintaining index diversification.
Rather than a simple weighted average, OCRR uses adaptive quantile aggregation. We take the central 80% of the distribution (trimming extreme outliers) and compute a weighted mean.
RATE DISTRIBUTION
◄ 10th %
80%
90th % ►
Rates sorted lowest to highest. Calculate 10th and 90th percentiles for central 80% boundaries.
Top 10% and bottom 10% excluded. Removes edge cases and temporary anomalies.
Apply √TVL weights to central 80% and compute weighted average for final OCRR rate.
OCRR = Σ(wi × ri) / Σwi
This methodology mirrors how SOFR (Secured Overnight Financing Rate) handles outliers in traditional finance, a proven, robust, and transparent methodology.
OCRR is computed in real-time, continuously aggregating the latest onchain data. The rate is published with full transparency and updated as market conditions change.