[GIP-154] Hardcode stETH Oracle to ETH
AI summary
This proposal, authored by Chaos Labs, recommends that Gearbox DAO hardcode the oracle for stETH and wstETH to ETH. This means that the value of stETH and wstETH within Gearbox will always be directly tied to the value of ETH, rather than relying on market prices. This approach is common in DeFi, particularly on platforms like Aave, to ensure stable and non-manipulable valuations for correlated assets.
If this proposal passes, the valuation of stETH and wstETH within Gearbox will become more stable and less susceptible to market manipulation, aligning with practices on other major DeFi platforms. This change primarily benefits users who hold or interact with stETH/wstETH on Gearbox by providing a more predictable and secure valuation mechanism. It does not involve direct treasury movements or payments.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Author
Chaos Labs
Summary
Chaos Labs provides a recommendation to implement a fundamental oracle for stETH and wstETH on all deployments.
Analysis
Current Oracle Implementation in DeFi
Fundamental oracles are critical in ensuring an accurate and non-manipulative continuous valuation of correlated assets. They are defined and enabled through withdrawal mechanisms that enable users to retrieve their underlying assets, thereby implicitly achieving market price convergence with the fundamental value. Currently, the practice of hardcoding stETH to ETH mirrors the underlying practices …