Overview
LlamaGuard Nav is a bounded Net Asset Value oracle for tokenized assets. It takes a reported NAV and constrains the published value to an expected range before making it available on-chain.
The bounds are configured from the asset's expected yield and permitted tolerances. This gives lending markets a predictable update envelope while preserving an auditable link to the source NAV.
Documentation in progress
LlamaGuard Nav is not yet documented as a production deployment. Contract addresses, supported assets, and integration instructions will be added when they are ready for use.
Why bound NAV updates?
NAV-based assets behave differently from freely traded tokens. Their reference value may accrue gradually between reports, while the source NAV itself arrives on a schedule and can be corrected after publication.
A bounded oracle limits how far a new on-chain value may move from the configured trajectory. The bound is explicit and reviewable; it is not a substitute for validating the underlying portfolio or administrator report.
How it works
Read the source NAV
The workflow obtains the latest NAV report and the context required to identify the asset and reporting time.
Calculate the permitted range
The configured expected APY determines the reference trajectory. Upper and lower tolerances define how far the candidate value may deviate from it.
Apply the bounds
The workflow evaluates the source value against the permitted range. The exact handling of out-of-range or stale observations belongs to the implementation configuration and will be documented with the production integration.
Publish on-chain
Chainlink CRE produces the report used to update the bounded NAV oracle. Downstream integrations read the accepted value through the oracle interface.
Configuration model
| Input | Purpose |
|---|---|
| Source NAV | Candidate value reported for the tokenized asset |
| Expected APY | Defines the expected value trajectory between reports |
| Lower tolerance | Limits downward deviation from that trajectory |
| Upper tolerance | Limits upward deviation from that trajectory |
| Observation time | Establishes when the source value applies |
Each deployment needs asset-specific parameters and a documented policy for missing, stale, or out-of-range source data.
Relationship to LlamaGuard Actions
LlamaGuard Nav publishes a bounded asset-value reference. LlamaGuard Actions publishes recommendations for risk parameters, such as collateral settings or market caps. A protocol may use both, but they answer different questions and have separate trust boundaries.