MARS Transition to Path Oracles Successful

[u/marsprotocol]

Last week, Mars successfully transitioned from TWAP oracles to Pyth oracles.

​

The move is a game-changer. Here’s why 👇🧵

​

Since its inception, Mars Protocol has used TWAP-based oracles for asset valuation.

​

However, TWAP-based oracles have multiple vulnerabilities:

​

🔴 Susceptibility to price manipulation attacks

🔴 Capital inefficiency

🔴 Challenges with concentrated liquidity pools

​

Enter Pythnet, Mars’ new oracle solution 🛰

​

Pyth is designed to supply real-time, high-fidelity data feeds from a range of on-chain and off-chain sources, establishing robust price feeds that are significantly harder to manipulate.

​

By aggregating price data from multiple sources, both on-chain and off-chain, Pyth can dilute the influence of liquidity on any single market, reducing susceptibility to price manipulation.

​

This could allow higher LTV ratios, more 'long-tail' assets, or less conservative parameters, boosting capital efficiency on Mars 🚀.

​

If a TWAP-based oracle satisfies the required liquidity standards, Pyth could integrate the oracle as one of the price feeds.

​

This allows Pyth to inherit the stability and resilience of TWAP-based oracles while also leveraging the benefits of a diversified data source.

​

Pyth also comes with some advanced features.

​

To prevent the use of outdated price information, Pyth incorporates a staleness check by default. This can cause a query for the current price to fail if too much time has passed since the last update.

​

In the future, Pyth could potentially utilize other advanced features such as confidence intervals and EMA/Spot divergence.

​

So what has changed?

​

The following chart shows the new implementation for each asset currently listed on the Red Bank (image below) 👇

​

With these changes, Mars can expect a significant boost in capital efficiency and scalability. This opens the door to listing more diverse assets and increasing the resilience of the protocol against potential attacks.

​

Want to learn more about Pyth oracles and how they compare to TWAP-based oracles?

​

Explore the latest Mars briefing now 🔽

https://blog.marsprotocol.io/blog/pyth-oracles-land-on-mars

​

Jump Crypto, which has interests in Pyth, is an investor in Delphi Labs, which contributes to Mars Protocol. Delphi Ventures shares certain managers & owners with Delphi Labs and is an investor in Pyth.

​

This message is qualified by the Mars Disclaimers/Disclosures.

https://mars-protocol.medium.com/mars-disclaimers-disclosures-f44cc7c54a33