Author

@Chaos Labs

Summary

This proposal aims to establish an effective price cap for all stablecoins in response to the recent crvUSD price spike caused by mass liquidation events.

Motivation

Addressing Price Volatility

Recent price spikes resulting from mass liquidation events have raised concerns about the stability and reliability of various stablecoins. Stablecoins are designed to maintain a stable value, typically pegged closely to $1. Highly temporary upward deviations can potentially induce substantial liquidation events through debt mechanisms.

Implementing a Price Cap

To mitigate these risks and enhance stability across the ecosystem, we propose the implementation of an effective price cap for all stablecoins. By capping prices, we can prevent excessive temporary surges and defend against potential manipulation events, ensuring stablecoins remain functional for their intended use cases.

Proposal

We recommend the following actions be undertaken for all stablecoins: Implement a Maximum Price Cap:

• Set a maximum price cap for all stablecoins at $1.04.

Technical specification

It’s proposed deploy following price feeds that are bounded by $1.04 and set them as main feeds for the corresponding tokens on all chains:

Mainnet

1. USDT – Bounded feed based on Chainlink oracle 0x3E7d1eAB13ad0104d2750B8863b489D65364e32D
2. DAI – Bounded feed based on Chainlink oracle 0xAed0c38402a5d19df6E4c03F4E2DceD6e29c1ee9
3. GHO – Bounded feed based on Chainlink oracle 0x3f12643D3f6f874d39C2a4c9f2Cd6f2DbAC877FC
4. USDe – Bounded feed based on Chainlink oracle 0xa569d910839Ae8865Da8F8e70FfFb0cBA869F961
5. USDC – Bounded feed based on Chainlink oracle 0x8fFfFfd4AfB6115b954Bd326cbe7B4BA576818f6
6. crvUSD – Bounded feed based on Chainlink oracle 0xEEf0C605546958c1f899b6fB336C20671f9cD49F
7. stkcvxcrvUSDUSDT-f – CURVE_2LP_ORACLE based on price feeds № 6 & 1 listed above.
8. stkcvxcrvUSDUSDC-f – CURVE_2LP_ORACLE based on price feeds № 6 & 5 listed above.
9. sUSDe – ERC4626_VAULT_ORACLE based on price feed № 4 listed above.
10. sDAI – ERC4626_VAULT_ORACLE based on price feed № 2 listed above.
11. FRAX – Bounded feed based on Chainlink oracle 0xB9E1E3A9feFf48998E45Fa90847ed4D467E8BcfD

Arbitrum

1. USDC.e – Bounded feed based on Chainlink oracle 0x50834F3163758fcC1Df9973b6e91f0F0F0434aD3
2. USDC – Bounded feed based on Chainlink oracle 0x50834F3163758fcC1Df9973b6e91f0F0F0434aD3
3. USDe – Bounded feed based on Chainlink oracle 0x88AC7Bca36567525A866138F03a6F6844868E0Bc

Optimism

1. USDC.e – Bounded feed based on Chainlink oracle 0x16a9FA2FDa030272Ce99B29CF780dFA30361E0f3
2. USDT – Bounded feed based on Chainlink oracle 0xECef79E109e997bCA29c1c0897ec9d7b03647F5E
3. DAI – Bounded feed based on Chainlink oracle 0x8dBa75e83DA73cc766A7e5a0ee71F656BAb470d6

Transaction log

Transaction logs can be found here md5 checksum is 47624676617150a6e415bd8c00645431 for Mainnet, d2afe724a06d6205372df7284f1b0ed8 for Arbitrum and 1c548e396977d984f48039645294c01c for Optimism

Voting

Simple Approve/Reject