Hello,
Matt from RedStone Oracles here.
RedStone has been selected by ether.fi in November 2023 as the Oracle provider (with the price discovery based on DEX’es liquidity) and for the past couple of months, we’ve been serving the weETH price feed to multiple protocols across Ethereum Mainnet and Arbitrum, soon on other L2s.
We believe that a purely market-based approach to pricing weETH is currently the most robust option as it gives protocols access to the true liquidation price. This is the solution selected by the vast majority of the lending protocols that partner with us. We prepared the methodology dedicated to LST/LRT assets, where we constantly monitor the on-chain liquidity of weETH and in real-time we can disconnect the sources when slippage increases above the safe level. The weETH market-based feeds denominated in USD and ETH have been operating on production since December 2023 and are available for consumption with the below details:
weETH/USD
Active Users: Sommelier
Deviation Threshold: 1%
Heartbeat: 6h
Address: 0xdDb6F90fFb4d3257dd666b69178e5B3c5Bf41136
weETH/ETH
Active Users: Morpho, Silo, Gearbox, Prisma, Gravita, Term Finance
About to launch: Ion Protocol, SturdyV2, Venus
Deviation Threshold: 0.5%
Heartbeat: 24h
Address: 0x8751F736E94F6CD167e8C5B97E245680FbD9CC36
However, if Fluid has a strong preference towards a contract-based price feed, we would suggest merging the market price feed with the contract exchange rate to improve the data quality. The access to both feeds could also protect against exploiting Fluid in case of a depeg of the asset (i.e. the protocol could block deposits to prevent malicious arbitrage).
Whatever the final choice of pricing methodology is, the RedStone team is here to cooperate closely with Fluid and set up the right price feed for this use case. We’ve been observing the progress, we’re in close contact with the core team and are excited about the expansion ahead!