0x107d1c9e…5a43sent to0xe087f94c…579b·#12,640,272·view on Etherscan
FIP-8: Use Chainlink Oracle
This proposal switches 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.
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
Forum Discussion: https://tribe.fei.money/t/chainlink-oracle-integration-discussion/3316