# MKR Oracle Report

**URL:** <https://forum.euler.finance/t/mkr-oracle-report/134>\
**Category:** Oracle Reports\
**Created:** [May 4, 2022, 2:26pm UTC](https://forum.euler.finance/t/mkr-oracle-report/134 "2022-05-04T14:26:21Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![seraphim](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/seraphim/32/33_2.png) [@seraphim](https://forum.euler.finance/u/seraphim)\
**Post date:** [May 4, 2022, 2:26pm UTC](https://forum.euler.finance/t/mkr-oracle-report/134/1 "2022-05-04T14:26:21Z")

</div>

# Summary

Using our risk framework and Uniswap V3 [price impact tool](https://oracle.euler.finance/)we give MKR a strong oracle rating.

This report is related to [eIP 10.](https://forum.euler.finance/t/eip-10-promote-mkr-to-cross-tier/131)

# Methodology

For maximum security of the oracle, it needs to fulfil 3 criteria:

1. Liquidity is provided over the full price range
2. Elevating the TWAP (Time-Weighted-Average-Price) to a meaningful extent is impossible or extremely costly.
3. Depressing the TWAP to a meaningful extent is impossible or extremely costly.

For more in-depth research on the nature of attacking TWAPs, check out [Michael Bentley’s research paper](https://github.com/euler-xyz/uni-v3-twap-manipulation/blob/master/cost-of-attack.pdf) and [Seraphim Czecker’s video explanation](https://www.youtube.com/watch?v=snwUwj3QQ7M&t=1s&ab_channel=EulerFinance).

# Analysis

## Full Range

 ![mkr](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/834ad6df606aa84e96ec210e18529eb9cb7f0fae.jpeg)

[https://info.uniswap.org/#/pools/0xe8c6c9227491c0a8156a0106a0204d881bb7e531](https://info.uniswap.org/#/pools/0xe8c6c9227491c0a8156a0106a0204d881bb7e531)

MKR/WETH appears to have full range liquidity (non-zero% is 100%) provided by a multitude of liquidity providers (8198 initialised #).

## Cost of Attack

We have analysed the cost of moving the TWAP of MKR/WETH by 20% up and down over 1 to 10 blocks. The results are:

 ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/92a005e67dbfc3c6eb5c6f145dd148165f6cc8cb.png)

This shows that manipulating the TWAP over a 1-2 block attack (the most realistic for an attacker) would cost at least $50 million, which is extremely expensive.

## Conclusion

Given the presence of full-range liquidity and substantial cost of attack, we give the asset above a strong oracle rating.