Oracle Security

Oracles have historically been the most common attack vector for DeFi exploits. RelDeFi oracle risk engine combines various risk practices such as heuristic and EWMA prices. And also maintaining its own oracles alongside those from other providers. RelBank acts as a shield to provide a Hybrid Security framework.

TWAP and EWMA Prices

Similar to price bands, Time Weighted Average Prices (TWAP) and Exponentially Weighted Moving Average (EWMA) prices are resistant to price manipulations because they identify the average price of an asset over time.

Since RelDeFi uses TWAPs and EWMAs, the protocol is protected from flash loans/flash crashes, as dramatic short term price changes are rejected. Exploiting the protocol via price manipulation is thus expensive, as it requires the exploiter not only to manipulate a price, but to sustain it for some period of time relative to the existing TWAP/EWMA intervals.

Price Bands

Each stable or soft-pegged asset in RelDeFi has a price range within which the smart contract expects the price to fall within. This is referred to as the price-band, and alongside TWAP/EWMA, also protects the protocol from flash crashes and flash-loan exploits.

For example, USD-pegged stables like USDC and USDH could have a 1% upper or lower band from $1. In this case, if the price is above $1.01, the price would be rejected. For BNB-pegged assets, price bands would be expressed relative to the BNB price.

Multiple Providers

RelDeFi cross-references oracles from both Pyth and Switchboard, as well as its own Switchboard oracles that ingest feeds from various on-chain and off-chain sources.

For RLDF Tokens, RelDeFi computes prices directly on-chain. Each RLDF Token price is calculated atomically, based on various price sources and the current state of the strategy.

Pyth

For RelDeFi Vaults, Pyth feeds (alongside other oracle feeds) are used as a reference price to ensure the prices of the pools we deploy into are unmanipulated. Pyth feeds are also used to ensure that the vault rebalancing mechanism swaps at fair prices during liquidity rebalancing.

For RelDeFi Lend, Pyth feeds are used to identify the relative value of the differents assets borrowed or supplied into the protocol.

Pyth is critical for the security of RelDeFi Lend, as it ensures that loan health ratios are properly computed and refreshed.

Pyth feeds are used for the following assets:

• SOL/USD

• ETH/USD

• BTC/USD

• mSOL/USD

• JitoSOL/USD

• USDC/USD

• USDT/USD

• HNT/USD

• RNDR/USD

• bSOL/USD

• PYTH/USD

• JTO/USD

• LST/USD

• BLZE/USD