[FIP-04] Removing Trust For Daily RWA Price and Yield Curve Updates

The Flux Finance protocol currently relies on the Flux Finance team to update all interest rate models and on-chain prices for RWA tokens issued by Ondo Finance. In an effort to reduce the amount of trust investors need to place in the Flux Finance Team, we propose the following changes:

  1. Deploy a new oracle and transfer the control of it to the Ondo DAO. This oracle will be used as the mechanism by which the Flux Finance protocol retrieves all underlying asset prices.
  2. Deploy new oracle-like smart contracts to constrain what the OUSG price can be set to. This contract will ensure that the price of OUSG will not change more than 100bps in a day. The new Oracle (1) will read from this contract when the OUSG price is queried. By reducing the amount the OUSG price can change in a day, we are limiting an attack vector where a malicious or erroneous price update can wreak havoc on the protocol.
  3. Transfer the ownership of all Interest Rate models to the Ondo DAO. These contracts used by the protocol to determine the supply and borrow APY’s.

We believe that these improvements will act as a stepping stone towards a more automated and decentralized pricing system for the Flux Finance protocol.

In the near future, we will propose a new contract that will build upon the 100 bps constraint in (2) by dynamically by using a new Chainlink SHV/USD price feed. This change will be the subject of another FIP proposal.


DAO and Oracle are always good idea!


I’m for. I bielive that the Team will lead us to success))

Any quantitative basis for choosing a 100bp deviation? I feel like a metric that is based on standard deviations would be more appropriate than a round number.