Discuss USDN price oracle

Can we discuss using an actual price oracle for USDN? The way a lending protocol should work is that the collateral should be able to be liquidated if the value is no longer enough to secure its borrow. This keeps lenders safe. What’s the point of having a liquidation mechanism that will never actually happen?


Only USDN oraclize isn’t work well
Needs T /C /N .

yes agreed. oracle on all of them is fine: USDN, USDC, USDT. The question is why aren’t there oracles on these assets?

I agree with the risk of manipulation

yes, there is risk of manipulating the oracle price.

What is the risk of the other side (no oracle at all)? The risk is if USDN goes to 0, the $550M USDC/T that was borrowed never needs to be returned. Thoughts here?

Considering the probability of the two possibilities occurring, the 1:1 peg makes more sense now instead of oracle price. Because the probability of USDN being 0 is low, but the oracle price is much more likely to be manipulated. We can consider to use BR rate but when we think about it in the current situation, we can see that it cannot produce a realistic solution either.
I think that lowering the collateral factor, liquidation threshold and increasing the liquidation penalty rate would be a better method than using oracle price.

@karmenali First, I appreciate your respectful and non-troll responses. I’m curious – are you concerned about the current situation at Vires? I don’t know how much you’ve supplied, or even which side of the supply/borrow you are on.

Lowering collateral factor, liquidation threshold & penalty… those all try to make the platform more conservative by threatening earlier liquidation, but liquidation is impossible with the current settings.