Summary
Using our risk framework and Uniswap V3 price impact tool we give MATIC, CVX, 1INCH, SHIB, AGEUR, oSQTH, ENS, RBN, USDT, PERP, AXS a strong oracle rating.
This report is related to eIP 5.
Methodology
For maximum security of the oracle, it needs to fulfil 3 criteria:
- Liquidity is provided over the full price range
- Elevating the TWAP (Time-Weighted-Average-Price) to a meaningful extent is impossible or extremely costly.
- Depressing the TWAP to a meaningful extent is impossible or extremely costly.
Meaningful extent is contingent on the effective factor (CF X BF) and will be addressed in the analysis.
For more in-depth research on the nature of attacking TWAPs, check out Michael Bentley’s research paper and Seraphim Czecker’s video explanation.
Analysis
Full Range
MATIC
https://info.uniswap.org/#/pools/0x290a6a7460b308ee3f19023d2d00de604bcf5b42
CVX
https://info.uniswap.org/#/pools/0x2e4784446a0a06df3d1a040b03e1680ee266c35a
1inch
https://info.uniswap.org/#/pools/0xd35efae4097d005720608eaf37e42a5936c94b44
SHIB
https://info.uniswap.org/#/pools/0x5764a6f2212d502bc5970f9f129ffcd61e5d7563
agEUR
https://info.uniswap.org/#/pools/0x9496d107a4b90c7d18c703e8685167f90ac273b0
oSQTH
https://info.uniswap.org/#/pools/0x82c427adfdf2d245ec51d8046b41c4ee87f0d29c
ENS
https://info.uniswap.org/#/pools/0x92560c178ce069cc014138ed3c2f5221ba71f58a
RBN
https://info.uniswap.org/#/pools/0x94981f69f7483af3ae218cbfe65233cc3c60d93a
USDT
https://info.uniswap.org/#/pools/0x4e68ccd3e89f51c3074ca5072bbac773960dfa36
PERP
https://info.uniswap.org/#/pools/0xcd83055557536eff25fd0eafbc56e74a1b4260b3
AXS
https://info.uniswap.org/#/pools/0x3019d4e366576a88d28b623afaf3ecb9ec9d9580
Summary
All the tokens have full range liquidity (non-zero % at 100%). Additionally, there is a well-diversified number of instances of liquidity provision (initialised #). The only exception is agEUR, where liquidity is protocol-owned and therefore optimal.
Cost of Attack
We have analysed the cost of moving the TWAP of XYZ/WETH by 20% up and down over 1 and 2 blocks and taken the minimum value. The results are:
| Cost | symbol | address |
|---|---|---|
| $1,000,000,000,000,000.00 | WETH | 0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2 |
| $1,949,174,903.69 | DAI | 0x6b175474e89094c44da98b954eedeac495271d0f |
| $1,118,852,420.59 | USDC | 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48 |
| $607,814,747.61 | LINK | 0x514910771af9ca656af840dff83e8264ecf986ca |
| $603,534,175.95 | SNT | 0x744d70fdbe2ba4cf95131626614a1763df805b9e |
| $558,642,103.39 | oSQTH | 0xf1b99e3e573a1a9c5e6b2ce818b617f0e664e86b |
| $533,900,111.46 | WBTC | 0x2260fac5e5542a773aa44fbcfedf7c193bc2c599 |
| $509,409,664.19 | UNI | 0x1f9840a85d5af5bf1d1762f925bdaddc4201f984 |
| $454,381,051.01 | USDT | 0xdac17f958d2ee523a2206206994597c13d831ec7 |
| $405,943,925.91 | SHIB | 0x95ad61b0a150d79219dcf64e1e6cc01f0b64c4ce |
| $301,337,105.02 | RBN | 0x6123b0049f904d730db3c36a31167d9d4121fa6b |
| $240,217,214.86 | MANA | 0x0f5d2fb29fb7d3cfee444a200298f468908cc942 |
| $230,431,576.85 | MKR | 0x9f8f72aa9304c8b593d555f12ef6589cc3a579a2 |
| $208,141,437.97 | KP3R | 0x1ceb5cb57c4d4e2b2433641b95dd330a33185a44 |
| $155,508,457.36 | AAVE | 0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9 |
| $149,886,448.93 | VADER | 0x2602278ee1882889b946eb11dc0e810075650983 |
| $145,398,916.36 | MATIC | 0x7d1afa7b718fb893db30a3abc0cfc608aacfebb0 |
| $142,336,022.80 | FLOAT | 0xb05097849bca421a3f51b249ba6cca4af4b97cb9 |
| $130,709,052.60 | KCAL | 0x14eb60f5f270b059b0c788de0ddc51da86f8a06d |
| $130,024,859.85 | agEUR | 0x1a7e4e63778b4f12a199c062f3efdd288afcbce8 |
| $115,874,057.68 | IDLE | 0x875773784af8135ea0ef43b5a374aad105c5d39e |
| $111,489,726.30 | SNX | 0xc011a73ee8576fb46f5e1c5751ca3b9fe0af2a6f |
| $104,388,441.74 | ENS | 0xc18360217d8f7ab5e7c516566761ea12ce7f9d72 |
| $100,191,866.15 | BANK | 0x24a6a37576377f63f194caa5f518a60f45b42921 |
| $78,011,689.94 | CRV | 0xd533a949740bb3306d119cc777fa900ba034cd52 |
| $75,119,016.93 | VUSD | 0x677ddbd918637e5f2c79e164d402454de7da8619 |
| $57,471,178.40 | AXS | 0xbb0e17ef65f82ab018d8edd776e8dd940327b28b |
| $55,587,304.53 | GRT | 0xc944e90c64b2c07662a292be6244bdf05cda44a7 |
| $40,864,425.33 | DPI | 0x1494ca1f11d487c2bbe4543e90080aeba4ba3c2b |
| $40,676,406.48 | COMP | 0xc00e94cb662c3520282e6f5717214004a7f26888 |
| $39,076,625.03 | SAND | 0x3845badade8e6dff049820680d1f14bd3903a5d0 |
| $37,698,999.76 | PERP | 0xbc396689893d065f41bc2c6ecbee5e0085233447 |
| $7,929,103.07 | 1INCH | 0x111111111117dc0aa78b770fa6a738034120c302 |
Summary
It costs a substantial amount of money to move the TWAP over 1-2 blocks by 20%, which isn’t even enough for the attacker to break even.
Conclusion
Given the presence of full-range liquidity and substantial cost of attack, we give the assets above strong oracle ratings.