1/
I disagree with a few things here.
First, the number of unique price sources is quite meaningless on its own.
For example, if 95% of a tokens volume and liquidity is one one exchange, averaging in 4 others could lower the quality of the price feed.
I disagree with a few things here.
First, the number of unique price sources is quite meaningless on its own.
For example, if 95% of a tokens volume and liquidity is one one exchange, averaging in 4 others could lower the quality of the price feed.
https://twitter.com/SergeyNazarov/status/1332075725898313730
2/
Second, you can’t directly compare manipulation resistance of entirely on-chain oracles that pulls from dex with something like chainlink that reports off-chain data
The attack surfaces and trust assumptions are very different
Second, you can’t directly compare manipulation resistance of entirely on-chain oracles that pulls from dex with something like chainlink that reports off-chain data
The attack surfaces and trust assumptions are very different
3/
Uniswap TWAPs report 100% accurate average of Uniswap price (at start of block) across arbitrary time periods with perfect reliability and accuracy.
The cost of manipulating is whatever is lost to arbitrage by moving the average market price across this period
Uniswap TWAPs report 100% accurate average of Uniswap price (at start of block) across arbitrary time periods with perfect reliability and accuracy.
The cost of manipulating is whatever is lost to arbitrage by moving the average market price across this period
4/
The cost of manipulating chainlink feeds is the cost of either:
a) corrupting enough of the people who are reporting prices or
b) manipulating prices on the exchanges being
a) Is unknown, but can’t be ignored. Chainlink seems to have operated fairly reliably so far.
The cost of manipulating chainlink feeds is the cost of either:
a) corrupting enough of the people who are reporting prices or
b) manipulating prices on the exchanges being
a) Is unknown, but can’t be ignored. Chainlink seems to have operated fairly reliably so far.
5/
b) also has unknowns and trust assumptions since it’s reporting prices from centralized sources.
If an asset is mostly traded off-chain on centralized exchange than this data is pretty important.
As dex continues to eat cex, cex data will continue to decline in relevance
b) also has unknowns and trust assumptions since it’s reporting prices from centralized sources.
If an asset is mostly traded off-chain on centralized exchange than this data is pretty important.
As dex continues to eat cex, cex data will continue to decline in relevance
6)
Also, we’re still super early in AMM. The fact that it’s sometimes easier to move the price than on an orderbook is due to capital inefficiency that will not be exist long term.
AMM will eventually be way more expensive to manipulate than CEX
Also, we’re still super early in AMM. The fact that it’s sometimes easier to move the price than on an orderbook is due to capital inefficiency that will not be exist long term.
AMM will eventually be way more expensive to manipulate than CEX
7)
Lastly, I’m going to be harassed and attacked for weeks for criticizing chainlink, despite this being a mostly technical / opinion post.
Imo it’s pretty disgusting and unacceptable. Will be blocking all who do so, to improve my Twitter experience.
Lastly, I’m going to be harassed and attacked for weeks for criticizing chainlink, despite this being a mostly technical / opinion post.
Imo it’s pretty disgusting and unacceptable. Will be blocking all who do so, to improve my Twitter experience.
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