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. No liveness checks are performed while retrieving oracle data. We believe Chainlink offers robust and historically stable price feeds, even more on Mainnet for high liquid assets such as WBTC, ETH and DAI. Also, by avoiding this check, we can lower the gas consumption of the involved transactions. The following contracts depend directly on Chainlink's price feed: Auditor, Price Feed Wrapper and Price Feed Double.
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.
All asset prices, including stablecoins, are accurately reflected by querying them from live, and regularly updated price feeds. This approach avoids the use of hardcoded values, thereby providing reliable and up-to-date pricing information for its users.
On Mainnet, prices are obtained and used by the Auditor to calculate accounts' collateral and debt values in ETH denomination. In this way, an extra call (ETH-USD) is saved, which translates to a reduction in gas consumption for liquidity checks.
Whereas on Optimism, prices are currently retrieved and used in USD denomination due to lower availability in price feeds offered by Chainlink.
It's important to notice that this difference is only spotted at a smart contract level and does not imply any variation in the result of the health factor calculation. The web app shows prices in USD denominations for a better understanding from a user's perspective.
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.
ETHadjusted factor of
0.8, a deposit of
112.5 ETHand borrow of
The adjusted collateral will equal
112.5 * 0.8).
The adjusted debt will equal
60 / 0.8).
The health factor will then equal