Summary
This proposal seeks to change the price source type for the Mars token to use spot, not twap
Motivation
The twap price is unreliable due to low liquidity triggering issues with Astroports TWAP. To prevent these issues, we propose migrating the source to use the spot price
Risks
Mars token is not used as a collateral on the protocol, so the exposure to any price manipulation is minimal.
However, under the right conditions the user could potentially manipulate the price of mars downwards, which would enable them to swap rewards from the rewards collector with greater slippage than specified by the protocol, which could result in a loss of rewards to the protocol. Given that under normal operation the total amount of rewards is usually low (due to frequent distribution), it is unlikely any profit could be extracted by any potential attacker.
Implementation
Oracle
{
"set_price_source": {
"denom": "factory/neutron1ndu2wvkrxtane8se2tr48gv7nsm46y5gcqjhux/MARS",
"price_source": {
"astroport_spot": {
"pair_address": "neutron19jmaa83fjglqetsun8d6p57vpftqs2p0k843ey50ezkv4c3pntzqddezrq"
}
}
}
}
Copyright
Copyright and related rights waived via CC0.
Disclaimers/Disclosures
This proposal is being made by Mars Protocol Foundation, a Cayman Islands foundation company. Mars Protocol Foundation engages in research and development of the Mars Protocol. Mars Protocol Foundation and certain of its service providers and managers own MARS tokens and have financial interests related to this proposal. The aforementioned persons or their affiliates may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including NTRN. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.
This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Mars Protocol Foundation may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Mars Protocol Foundation is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Mars Protocol Foundation shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.