> For the complete documentation index, see [llms.txt](https://docs.fira.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fira.money/developers/utility-contracts/oracles/lp-oracle.md).

# LP Oracle

{% hint style="info" %}
**Source:** `src/fira_bonding/oracles/LpOracleLib.sol`
{% endhint %}

## Overview

LP token pricing is more complex than BT/CT because LP represents a share of a pool with two assets (BT + FW) in varying proportions.

## Pricing method

The library simulates a hypothetical rebalancing trade:

1. Compute the market's current `rateScalar` and `rateAnchor`
2. Compute `cParam = exp(rateScalar × (rateOracle - rateAnchor))` — where the pool "should" be according to the oracle
3. Calculate the hypothetical trade size to move the pool to the oracle-implied proportion
4. Sum total asset value after the trade: FW reserves (in asset terms) plus BT reserves, adjusted by post-trade rates
5. Divide by total LP supply

The hypothetical trade rate is the average of the oracle TWAP rate and the last trade rate, dampening the impact of stale oracle data.

### Post-expiry

LP pricing simplifies: 1 BT = 1 asset, so `LP value = (totalBt + fwToAsset(totalFw)) / totalLp`.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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, and the optional `goal` query parameter:

```
GET https://docs.fira.money/developers/utility-contracts/oracles/lp-oracle.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.