New Oracle Mechanisms

Here is a breakdown of the key features and mechanisms of the new oracle solution.

Enhanced collateral price feeds: In addition to the original TWAP, spot prices are incorporated, with additional price feeds from Curve, Uniswap V3, and Balancer.

Arbitrage prevention: Minting and redeeming transactions are conducted at different prices to eliminate arbitrage trades. This helps to protect the collateral held by the protocol.

fToken mint at the minimum price

fToken redeem at the maximum price

xToken mint at the maximum price

xToken redeem at the minimum price

Risk management: Collateralized ratio is calculated at maximum price as well as stability pool liquidations. This ensures that risk is managed effectively, and liquidations occur at appropriate levels to maintain system stability.

Net Asset Value: NAV is calculated based on TWAP during non-transacting period. This NAV calculation can serve as an oracle price feed for various DeFi applications integrating f(x) assets.

Additional protection measures for xTokens: To prevent arbitrage trades, xTokens cannot be both minted and redeemed within the same block. Additionally, a transfer of xTokens cannot occur within a specified timeframe of thirty minutes after minting. These measures help in mitigating potential exploits and maintaining price integrity.

[ETH/USD Spot] have 4 price sources, which are:

stETH New oracle:

  1. [stETH/ETH Curve Spot] * [ETH/USD Spot ]

  2. [stETH/ETH Univ3 Spot] *[ ETH/USD Spot ]

  3. [stETH/ETH Balancer Spot] * [ETH/USD Spot ]

  4. [stETH/ETH Curve2 Spot] * [ETH/USD Spot ]

frxETH New oracle:

  1. [Curve frxETH/WETH Spot] * [ETH/USD Spot ]

  2. [Curve frxeth Spot] * [ETH/USD Spot ]

weETH New oracle:

  1. [Uniswap V3 ETH/weETH 0.05%] * [ETH/USD Spot ]/weETH.getRate()

  2. [Uniswap V3 wstETH/weETH 0.05%] *[wstETH/stETH rate] * [ Curve steth-ng]* [ETH/USD Spot ]

  3. [Curve weETH/ETH] * [ETH/USD Spot ]

ezETH New oracle:

  1. [Curve ezETH/ETH] * [ETH/USD Spot ]

  2. [Balancer V2 Stable] * [ETH/USD Spot ]

WBTC New oracle:

  1. [WBTC/USDC spot price of Curve TriCryptoUSDC]

Code: https://github.com/AladdinDAO/aladdin-v3-contracts/pull/198

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