Proposal to Update Price Feeds for DOLA/crvUSD LP Markets on FiRM

Summary

This proposal seeks to update the price feeds for the DOLA/crvUSD Convex LP and the DOLA/crvUSD Yearn LP markets on FiRM to a newly deployed, more secure price feed contracts. These updates address potential black swans related to price staleness and ensure accurate and reliable pricing for our collateral assets.

Background

In September 2024, we successfully integrated the DOLA/crvUSD Liquidity Pool Token (LPT) from Curve Finance as a collateral asset on FiRM, our fixed-rate lending protocol. This integration included two distinct markets:

  1. DOLA/crvUSD Convex LP Market
  2. DOLA/crvUSD Yearn LP Market

These markets allow users to leverage their stable liquidity positions, enhancing capital efficiency and strengthening our partnership with Curve Finance, Convex, and Yearn.

During a recent review, our development team identified shortcomings in the existing price feed contracts related to staleness checks. Specifically, the staleness checks could fail in rare scenarios where crvUSD is priced over peg for a sustained period of time. To address these concerns, we developed new price feed contracts that remove the staleness checks and ensure the lowest price is always used. This approach further mitigates the risk of price manipulation and enhances the security of the protocol.

Price Feed

  1. DOLA/crvUSD Convex LP Price Feed
  • Contract Address: 0x4eF6BA5Ef7ddB259AD98CD86E1A282884CBE0C0F
  • Functionality: Calculates the minimum USD price of the LP token by always selecting the lower of the two asset prices (DOLA or crvUSD), without considering staleness.
  1. DOLA/crvUSD Yearn LP Price Feed

On-Chain Action

  1. Set FiRM Oracle Price Feed for DOLA/crvUSD Convex LP to newly deployed feed
  2. Set FiRM Oracle Price Feed for DOLA/crvUSD Yearn LP to newly deployed feed