The wrongful liquidation of five wstETH borrow positions on December 2nd was due to wstETH/ETH Chainlink price feed reporting exaggerated value for wstETH. It is believed that large trades for wstETH caused Chainlink’s volume-weighted oracle (VWAP) to report erroneous price for wstETH. We still don’t have accurate information about the cause, but a sandwich attack might have been the cause .
- Change wstETH price oracle
- Silo address: 0xA8897b4552c075e884BDB8e7b704eB10DB29BF0D
- Chain: Arbitrum
- Current feed that needs to be replaced: Chainlink WSTETH / ETH 0xb523AE262D20A936BC152e6023996e46FDC2A95D
- New price Feed: Chainlink stETH/ETH: 0xded2c52b75B24732e9107377B7Ba93eC1fFa4BAf and wstETH-stETH Exchange Rate: 0xB1552C5e96B312d0Bf8b554186F846C40614a540
Reason: stETH price feed is considered more resilient given stETH deep liquidity cross-chain
stETH/ETH feed: Price Feed Contract Addresses | Chainlink Documentation
wstETH-stETH Exchange Rate: Price Feed Contract Addresses | Chainlink Documentation
If the proposal faces no objections, Silo’s development team will prepare the change and queue it for execution. We will share the executive proposal and execution transaction with the community.
Executed successfully: Deploying a new price provider (oracle) for wstETH on Arbitrum. The wstETH-ETH-USDC Arbitrum market now uses an oracle that calculates the value of wstETH using two Chainlink feeds: stETH/ETH and wstETH/stETH exchange rate. Oracle address: WSTETHPriceByChainlinkArbitrum | Address 0xf1268Fd0F285fCDcA2bC130E1B44229079487DD1 | Arbiscan Executed proposal Arbitrum Transaction Hash (Txhash) Details | Arbiscan The transaction performed the following:
## Action 1: Registering price provider
provider: WSTETHPriceByChainlinkArbitrum Developers comment register WSTETHPriceByChainlinkArbitrum as price provider
## Action 2: Set up price feed for wstETH
Price provider: WSTETHPriceByChainlinkArbitrum (0xf1268Fd0F285fCDcA2bC130E1B44229079487DD1) _asset: 0x5979d7b546e38e414f7e9822514be443a4800529 _aggregator: 0xb1552c5e96b312d0bf8b554186f846c40614a540, _fallbackProvider: 0x0000000000000000000000000000000000000000, _heartbeat: 87001, _convertToQuote: true Developers comment setup wstETH price
# Action 3: Choose a price provider for wstETH
wstETH’s price provider: WSTETHPriceByChainlinkArbitrum The action registers a price provider in the protocol’s repository of price providers to be used for the asset. The Repository manages price providers and maps assets to their price providers.