Summary
This Request for Comment (RFC) proposes an upgrade to the protocol’s price resolution mechanism to significantly improve the resilience of the price feeds used by protocol contracts, particularly for OHM. By upgrading the existing PRICE module to PRICE v1.2, the protocol can mitigate single points of failure by utilizing multiple price feeds, ensuring operational stability without requiring changes to existing downstream policies.
Motivation
Justification
The Olympus protocol currently relies on a linear chain of two price feeds—Chainlink OHM-ETH and Chainlink ETH-USD—to determine the price of OHM. If there were to be any misconfiguration, misreporting, or downtime in either of those individual feeds, the protocol’s automated operations (such as the Yield Repurchase Facility and Emission Manager) could potentially perform minting and burning operations based on inaccurate data.
Objective
The primary objective is to strengthen the fault-tolerance of OHM price resolution. By upgrading the underlying architecture to support multi-feed resolution, the protocol can verify price data across independent sources, ensuring that automated market operations remain safe and accurate even during adverse market conditions or third-party feed outages.
Specification
Implementation
This proposal involves upgrading the existing PRICE module to PRICE v1.2.
- Core Logic: The module is powered by the PRICE v2 logic, which was audited twice as part of the larger RBS v2 project in 2023.
- Backwards Compatibility: This version includes a specific compatibility layer that maintains the v1 interface. This ensures that critical policies—such as the Operator, YieldRepurchaseFacility, and EmissionManager—benefit from improved resilience without needing to be updated or redeployed.
- Audit Requirements: While the core v2 logic is audited, the minor changes applied post-audit to create the v1 compatibility layer will undergo a fresh audit before this proposal moves to an OIP.
- Scope: This upgrade applies strictly to the PRICE module. The TRSRY v1.1 upgrade, SPPLY module, and Appraiser policy that were included in the RBS v2 audit are not included.
External Oracle Support
In addition to internal improvements, this release includes policy contracts that support the creation of resilient oracles for external use, such as lending markets. Supported standards include:
- Chainlink
- The OCG timelock and holders of the “price_manager” role can use the factory contract to create an oracle contract for a specific token pair.
- ERC-7726 (Euler)
- Morpho
- The OCG timelock and holders of the “price_manager” role can use the factory contract to create an oracle contract for a specific token pair.
Asset Configuration
- USDS
- Average of Chainlink DAI-USD and Chainlink USDS-USD feeds
- sUSDS
- Uses sUSDS-USDS exchange rate internal to the vault
- wETH
- Average of Chainlink ETH-USD and RedStone ETH-USD feeds
- OHM
- Average of Uniswap V3 OHM-WETH and Uniswap V3 OHM-sUSDS pools, with a short TWAP window applied (60s)
Utilising this configuration, the price of OHM will be determined using two completely separate paths (wETH and USDS), without any overlap in the oracles/price feeds used.
wETH Price Resolution
USDS Price Resolution
OHM Price Resolution
Rationale
Transitioning to PRICE v1.2 provides an immediate improvement to the protocol's defensive posture. It allows the protocol to move away from a reliance on single data sources for OHM pricing. By "wrapping" the sophisticated, multi-feed capabilities of the v2 system in a v1-compatible interface, we achieve a high-impact security upgrade with minimal friction and no disruption to current operations.
Next Steps
- Community Discussion: Continued discussion regarding the implementation and risk modeling.
- Audit: The specific backwards-compatibility changes made to the v2 logic will be submitted for audit.
- OIP: Formalize into an OIP for execution once the audit is complete and consensus is reached.
- Activation: Deployment and activation via multisig batch
