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Price Oracle Solution for Unbound

Oracle is the heart of the Defi ecosystem and one that is most vulnerable to manipulation. We started with uniswap reserve ratios as the only source of price discovery, but we quickly realized our folly and the hack of compound reiterated the mistake of relying on single price feed. Following are some of the approaches we tried

A Geometroc Mean is :

Under this valuation the value of the pool becomes where k is the invariant of a Uniswap pool. This means the value remains invariant of the activity within the pool and depends primarily on the price variations in Chainlink. In case the Chainlink price gets manipulated, Geometric Mean(GM) still helps to better normalize it than Arithmetic mean since a property GM of two numbers will always yield a result that is closer to the smaller number.

Last modified 6mo ago

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