how much of the documented protocol is in production?
going live in May, pending audits
are there any stablecoins using it today? if so, how much total supply?
not yet, see UMA stablecoin idea below
black Thursday risk? how would UMA’s oracle have held up?
when a CDP drops below liquidation threshold, it is liquidated immediately BUT the payout is withheld for e.g. 1 hour of a“liveness requirement”
liveness requirement introduces arbitrage friction, because liquidator has ETH price risk for that duration
what is the dispute cost?
can be parameterized based on each deployed synthetic
what if the network is clogged?
need to balance liveness period with usability
maker was 6min auctions, this could be 1 hr
if dispute, collateral is frozen for two days? Isn't this an issue?
yes, but disputes only happen in the extreme case, and ideally the tokens staked for a dispute should be costly enough that disputes are extremely rare, if they happen at all
who controls the UMA tokens? Has it launched yet?
>50% is owned by the foundation and they are trying to figure out the best way to let people“activity mine” the tokens
the rest is owned by the seed investors, who they have not disclosed yet
are the price votes medianized somehow?
no, it’s just the mode(most frequent)
how is the fuzzyness of the price sorted out?
e.g. without a constant oracle input onchain, the liquidators don’t know exactly what the oracle will resolve to eventually, so they have to guess that the oracle price will resolve below the liquidation price
that means liquidators take some risk when they go to liquidate, because they have to consider the risk that their liquidation might be disputed and the oracle will not resolve in their favor
this will result in a market structure where some liquidators have more confidence in the expected oracle price and therefore will be more willing to initiate a liquidation at a price very closely below the liquidation price, where others who are more risk averse will wait for the price to drop further below the liquidation price before initiating a liquidation
the team expects to provide software for the oracle price voters that the liquidators can also run themselves in order for everyone to be synced on the expected price without having to publish it onchain directly
“After the reveal period ends, the price is considered resolved if enough voters submitted a vote. Once resolved, voters can request their newly minted vote tokens as a reward for them voting with the majority.”
what does it mean to vote with the majority?
what happens if not enough people vote and the price is not resolved
5% quorum, if quorum is not met, the vote rolls over to the next period
quorum is only changeable via token holder approval
from the code it seems that the votes on price input price as discrete variables, and then the votes are tallied for each price point - is there any guidance for the number of decimals to use?
there will need to be offchain coordination around the # of decimals
UMA stablecoin idea
Expiry contract - token redeemed $1 worth of ETH at some future point
but we don’t want it to expire…
Need some automated way to transition between expiry dates(e.g. may → june)
use balancer pool combined with constant function to incentivize arbs of selling May token for June tokens on an ongoing basis
using UMA, above could happen and only require oracle calls at the monthly rollover point OR if there is a liquidation dispute
Questions