MIP10c3-SP9 Proposal: COMPUSD Oracle (Collateral Onboarding Oracle Assessment)

Preamble

MIP10c3-SP#: 9
Author(s): Niklas Kunkel (@NiklasKunkel)
Contributors:
Type: Process Component
Oracle Team Name: Green
Status: RFC
Date Proposed: 2020-09-08
Date Ratified: <yyyy-mm-dd>

Specification

Introduction

This Oracle would provide the COMP/USD price as part of the collateral onboarding process for COMP.

Oracle Data Model

|    Source    |  Asset Pair   |Quorum | Feed Model  | Oracle Model |
| :----------- | :------------ | :---: | :---------: | :----------: |
|    Binance   |    COMP/USDT  |   13  |    Median   |    Median    |
|    Coinbase  |    COMP/USD   | 
|    Huobi     |    COMP/USDT  |
|    Kraken    |    COMP/USD   |
|    KuCoin    |    COMP/USDT  |
|    Uniswap   |    COMP/ETH   |

Oracle Supporting Data Model(s)

USDT/USD (canonical)

|    Source     |  Asset Pair   |  Feed Model  |
| :------------ | :------------ | :----------: | 
|   Binance     |    BTC/USDT   |    Median    |
|   BitFinex    |    USDT/USD   |              |
|   FTX         |    ETH/USDT   |              |
|   Huobi       |    ETH/USDT   |              |
|   Kraken      |    USDT/USD   |              |
|   OKEx        |    BTC/USDT   |              |

ETH/USD (canonical)

|    Source     |  Asset Pair   |  Feed Model  |
| :------------ | :------------ | :----------: | 
|   Binance     |    ETH/USD    |    Median    |
|   Bitfinex    |    ETH/USDT   |              |
|   Bitstamp    |    ETH/USD    |              |
|   Coinbase    |    ETH/USD    |              |
|   Gemini      |    ETH/USD    |              |
|   Kraken      |    ETH/USD    |              |

Oracle Address

  • Medianizer - Mainnet TBD
  • Oracle Security Module (OSM) - Mainnet TBD

Supported Tools

Remaining Work

  • Deploy and configure Medianizer and Oracle Security Module smart contracts to Mainnet
  • Coordinate Feeds to upgrade to latest release candidate
  • Push new relayer configuration with COMP/USD Medianizer smart contract address

Summary

The COMP token is traded on a wide variety of exchanges. When ranked by wash-trading adjusted volume most of the reputable exchanges trade against USDT. Being overweight in USDT is an undesirable property as it exposes the price model to a potential tether collapse risk. OKEx’s COMP/USDT was dropped as a source in favor of Huobi’s COMP/USDT as Huobi has more liquidity and as such is more expensive to manipulate.

Kraken’s COMP/USD was chosen due to USD fiat pairs being preferred for price discovery. Despite the low volume on Kraken relative to others in this set, the market-depth is disproportionally deep and bots arbitraging against Coinbase’s COMP/USD have abnormally high activity on Kraken.

2 Likes