Exactly Protocol
Search…
⌃K
🔮

Price Feeds

Exactly Protocol uses Chainlink's data feeds to get reliable, up-to-date, and secure asset prices to calculate users' lending power and health factor.
Chainlink is the most used data provider in the industry. It provides secure pricing feeds and it is the DeFi standard oracle network with over six trillion in transaction value enabled.

Uniswap TWAPs

Other sources, such as Uniswap's TWAPs, have also been considered but finally discarded.
After Ethereum's upgrade from proof of work to proof of stake, block proposers are chosen deterministically before they validate blocks. This feature creates new challenges for decentralized price oracles, like those provided by Uniswap V3, because they open up more significant potential for inter-block price manipulation, as detailed below.
Block proposers are alerted ahead of time when they are selected to propose a block. This gives them a unique opportunity to carry out oracle manipulation attacks. If they are chosen to propose block n, they can attempt to manipulate the spot price on block n-1, knowing that they will be free to arbitrage their own price manipulation on the next block (and censor any other attempts at arbitrage).
It is hard to estimate how many block proposers will view oracle manipulation attacks as a legitimate way to increase their income. It seems likely many will not take the risk of carrying out these kinds of attacks. However, as long as the number is non-zero, it is clear there is some reduced cost for carrying out these possible attacks.

Health Factor

The health factor is calculated from the user's collateral balance (in ETH) multiplied by each asset's adjust factor divided by the user's debt which is also divided by this adjust factor.
Given an ETH adjusted factor of 0.8, a deposit of 112.5 ETH and borrow of 60 ETH:
The adjusted collateral will equal 90 (112.5 * 0.8).
The adjusted debt will equal 75 (60 / 0.8).
The health factor will then equal 1.2.
Below a health factor of 1, the user will be considered with shortfall and open to liquidation.