Enhance Oracle Failure Mitigation Strategies

langnavina97 commented 1 week ago

Background

Our current system relies heavily on price oracles for critical operations such as token swaps and liquidity provision. While we have an upgradeable oracle in place, there might be a need to implement additional safeguards to protect against potential oracle failures or manipulations.

Current Risks

Users may be unable to withdraw tokens if the oracle fails
Incorrect pricing could lead to unfair swaps or liquidity provisions
Potential for exploitation by malicious actors if oracle data is manipulated

Proposed Enhancements

Fallback Mechanism for Fee Reinvestment
- Allow asset managers to reinvest fees by specifying a minimum amount out, bypassing the oracle
- This enables continued operation during oracle downtime

aj07 commented 1 week ago

Bit very edge case.. ( but we had some issue in v2 where chain link stopped supporting the price feed for some tokens). There user had option to do multitoken withdrawal.

Here, as an alternate we can have "Allow asset managers to reinvest fees by specifying a minimum amount out" and i was thinking we can think of alternate oracle this time...if we all agree we can take the bnb oracle

langnavina97 commented 1 week ago

Using the function updateFeed we could update the aggregator and deploy our own contract (aggregator) to interact with any oracle.. @Havoc19 what do you think?

Velvet-Capital / Velvet-v4