MIP10c3-SP#: 16 Author(s): Niklas Kunkel (@NiklasKunkel) Contributors: Type: Process Component Oracle Team Name: Green Status: RFC Date Proposed: 2020-11-27 Date Ratified: <yyyy-mm-dd>
This Oracle would provide the PAXG/USD price as part of the collateral onboarding process for PAXG.
Oracle Data Model
| Source | Asset Pair |Quorum | Feed Model | Oracle Model | | :----------- | :------------ | :---: | :---------: | :----------: | | Binance | PAXG/USDT | 13 | Median | Median | | Bitthumb | PAXG/USDT | | Gemini | PAXG/USD | | Kraken | PAXG/USD | | Uniswap | PAXG/ETH |
Oracle Supporting Data Model(s)
| Source | Asset Pair | Feed Model | | :------------ | :------------ | :----------: | | Binance | ETH/USD | Median | | Bitfinex | ETH/USDT | | | Bitstamp | ETH/USD | | | Coinbase | ETH/USD | | | Gemini | ETH/USD | | | Kraken | ETH/USD | |
| Source | Asset Pair | Feed Model | | :------------ | :------------ | :----------: | | Binance | BTC/USDT | Median | | BitFinex | USDT/USD | | | FTX | ETH/USDT | | | Huobi | ETH/USDT | | | Kraken | USDT/USD | | | OKEx | BTC/USDT | |
- Medianizer - Mainnet TBD
- Oracle Security Module (OSM) - Mainnet TBD
- Setzer - 8d03ca51265e9372716ba89e7063d062b146a85b - Added support for PAXG/USD
- Omnia - 55d81d36fd30183c71ce43797c09e0de88102995 - Added support for PAXG/USD
- Kovan - PAXG/USD Medianizer - 0x921232466447816628f09E657B2Ab6d1D8A92BE8
- Kovan - PAXG/USD Oracle Security Module - 0x31CceDBc45179f17CfD34967680C6560b6509C1A
- Deploy and configure Medianizer and Oracle Security Module smart contracts to Mainnet
- Push new relayer configuration with PAXG/USD Mainnet Medianizer smart contract address
The chosen Data Model utilizes a mix of USDT, ETH, and direct-to-USD pairings to limit exposure to quote manipulation.
The PAXG token is a little bit problematic from an Oracle risk perspective, and this should be accounted for in the debt ceiling if Maker Governance chooses to onboard PAXG as collateral in the Maker Protocol. The issue stems from the volume being exceedingly small. The usual method of protecting from market manipulation is sample a diverse array of exchanges. However, in the case of PAXG, since the liquidity is so low, it becomes much more feasible for an attacker to manipulate enough markets at the same time to execute an Oracle attack. Therefore if Maker Governance insists on adding PAXG as a collateral-type the Oracle Team recommends an initial debt ceiling of not more than 1,000,000 in order to cap losses from a potential Oracle attack.