Summary
Objective Labs recommends migrating vaults in Euler Yield to push-based oracles to better facilitate trading via EulerSwap. Pull-based oracles require a fresh price update to be applied before quoting and the same to be applied in a batch during execution. This transaction flow is unique to Pyth and is currently not supported by leading DEX aggregators. We expect that applying these changes to Euler Yield’s oracle configuration will not disrupt the market’s current dynamics.
Oracle Recommendations
| Vault | Current Oracle | Proposed Oracle |
|---|---|---|
| USDC, syrupUSDC, PT-syrupUSDC | Pyth USDC/USD | Chainlink USDC/USD |
| USDT | Pyth USDT/USD | Chainlink USDT/USD |
| PYUSD | Pyth PYUSD/USD | Chainlink PYUSD/USD |
| RLUSD | Fixed Rate 1:1 | Chainlink RLUSD/USD |
| USDe, eUSDe, sUSDE, PT-eUSDe, PT-USDe, PT-sUSDe | Pyth USDe/USD | RedStone USDe/USD |
| USDS, sUSDS, PT-USDS | Pyth USDS/USD | Chainlink USDS/USD |
| DAI, sDAI | Pyth DAI/USD | Chainlink DAI/USD |
| USDtb | Fixed Rate 1:1 | RedStone USDtb/USD |
Proposed changes to derivative assets (e.g. syrupUSDC, PT-eUSDe) refer to the underlying leg of the oracle. To avoid issues due to price oracle desynchronization we recommend migrating the entire family of assets to the same underlying price feed.
We recommend using Chainlink where available with two notable exceptions. For Ethena assets we recommend using RedStone as the oracle provider due to RedStone’s lower deviation threshold (0.2% compared to 0.5%). RedStone’s USDtb oracle is more suitable than 1:1 because of its robust methodology: a hybrid fundamental price feed which returns USDtb’s NAV capped at $1.
An exception to the migration plan is USD0, USD0++, and associated PTs. We recommend these assets stay with their current Pyth oracles. USD0 and USD0++ are supported by Chainlink, however they are marked as medium and high market risk respectively. Recent price update history is discontinuous with USD0++, while USD0 recorded a transient spike to $1.015 on Jun 11, which we ascertain is similar due to the recent deUSD spike on Avalanche, which led to liquidations on Euler.