Forum Discussion

https://tribe.fei.money/t/chainlink-oracle-integration-discussion/3316

Basic Summary

Switch the primary ETH-USD oracle to Chainlink from the ETH-USDC TWAP currently used. This would enhance accuracy, reduce manipulation resistance and reduce reliance on USDC.

Motivation

Chainlink has a robust oracle network, which leverages data from both on- and off-chain sources. Many other Ethereum projects use and collectively support the Chainlink ETH/USD oracle, including Synthetix, Aave, Set Protocol, Loopring, and many more.

Because it uses a 50bps deviation threshold as trigger rather than a static TWAP, the Chainlink oracle responds faster to market volatility. This would help enhance the peg and protocol mechanisms.

Currently the protocol use oracles in determining: The bonding curve purchase price for FEI The reserve stabilizer sale price for FEI The price to reweight to The slippage tolerance on Uniswap swaps and liquidity provision

Additionally, upgrading to chainlink would save gas for users during oracle updates in FEI swaps on Uniswap and other protocol flows.

The oracle to be used is the ChainlinkOracleWrapper written by @eswak here: https://github.com/fei-protocol/fei-protocol-core/pull/100

Specification

The following actions would be taken on the DAO:

1. Set oracle on EthBondingCurve Target: 0xe1578B4a32Eaefcd563a9E6d0dc02a4213f673B7 Method: setOracle(address) Oracle: 0xcd3c40ae1256922ba16c7872229385e20bc8351e

2. Set oracle on EthUniswapPCVDeposit Target: 0x5d6446880fcd004c851ea8920a628c70ca101117 Method: setOracle(address) Oracle: 0xcd3c40ae1256922ba16c7872229385e20bc8351e

3. Set oracle on EthUniswapPCVController Target: 0x0760dfe09bd6d04d0df9a60c51f01ecedceb5132 Method: setOracle(address) Oracle: 0xcd3c40ae1256922ba16c7872229385e20bc8351e

4. Set oracle on EthReserveStabilizer Target: 0xa08A721dFB595753FFf335636674D76C455B275C Method: setOracle(address) Oracle: 0xcd3c40ae1256922ba16c7872229385e20bc8351e

Voting Rules

Voting will last 2 days ending on Sunday, June 13 at 12pm PT This is a non-binding signal vote. Please keep in mind that snapshot votes can be changed but not withdrawn until the end of the voting period.

The two options to vote on are:

Yes
No

If this vote passes with a Yes majority, the specified changes will be submitted for an on-chain DAO vote.