- Title: Change the 1INCH price oracle to Chainlink
- Author(s): Jordan Reindl (RoundElephant)
- Submission Date: 26.08.2022
This proposal calls for changing the 1INCH price oracle to Chainlink from the Uniswap v3 1INCH/WETH 0.3% fee pool.
Currently, the 1INCH price oracle is the Uniswap v3 1INCH/WETH 0.3% fee pool – the majority of the liquidity in this pool is concentrated and the Oracle rating is only Medium. There is significant on-chain liquidity for 1INCH, but it is fractured across several different liquidity pools.
1INCH has been supported on Chainlink for nearly 2 years. This oracle has been used throughout DeFi without issue – most recently in the 1INCH Aave market.
After discussions with @euler_mab, it seems that PoS Ethereum represents unique challenges with using TWAP Oracles. Switching to an oracle that is harder to manipulate will reduce the risk for participants in this market.
Because 1INCH has a robust Chainlink Oracle, there seems to be little reason in continuing to use the TWAP Oracle.
If passed, the 1INCH market’s price oracle should be updated to use the Chainlink 1INCH / USD oracle see here: 1INCH / USD | Chainlink.
Yes– the 1INCH market should have its oracle changed to use the Chainlink 1INCH / USD oracle.
No– the 1INCH market should keep using the Uniswap v3 1INCH/WETH 0.3% fee pool TAP oracle.