cETH Frozen On Compound V2 Amid Oracle Error

Tuesday, August 30, 2022

Quick Take

  • cETH on Compound is temporarily frozen due to an oracle error.
  • DeFi Saver implements trailing stops.
  • Myria launches a STARK-based zk-Rollup.
  • Voltz launches fixed rate borrowing.

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cETH Frozen On Compound V2 Amid Oracle Error

cETH on the Compound V2 market is effectively frozen due to an oracle error that is causing transactions for ETH suppliers and borrowers to revert. The error was introduced by a faulty oracle update that went live as part of proposal 117. Compound claims that the oracle had been audited by three auditors. User funds are currently not at risk, although the situation is developing.

Proposal 119 has since been created to revert to the previous price feed. It will take about a week for the proposal to go into effect. According to Compound Founder Robert Leshner, liquidation has been paused until Proposal 119 goes into effect. The error is affecting third-party protocols that use Compound, including Index Coop.

DeFi Saver Trailing Stop Strategy

DeFi Saver has added support for a trailing stop strategy, available for MakerDAO and Liquity users. A trailing stop allows traders to set a percentage below or above the market price that will trigger a full closing of a position. A traditional stop-loss order is set at a specific price, whereas a trailing stop will continuously change the stop price as the market moves.

The strategy allows traders to stay open and continue to profit as long as the price is moving in a favorable direction. A stop-loss can still be paired with a trailing stop to limit losses. The implementation is part of DeFi Saver’s modular automated strategies architecture which uses Chainlink for on-chain market data and 0x for liquidity.

Myria Announces STARK-Based ZK-Rollup

Myria announced the launch of its STARK-based zk-Rollup scaling solution in partnership with StarkWare. The protocol claims to offer instant transactions, zero gas fees, and scalability of up to 9,000 TPS. Myria is likely using StarkWare’s StarkEx app-specific scaling solution, which is currently used by ImmutableX, SoRare, and Rhino.fi.

Myria also built a native NFT marketplace and non-custodial wallet. When connected to the Myria Marketplace, a MetaMask connection flow will trigger, create, and link a STARK Key and Myria L2 wallet. A Myria SDK is also available, which allows developers to mint NFT collections. Myria is a scaling protocol focused on blockchain gaming and NFTs.

Voltz Launches Fixed Rate Borrowing

Voltz, an AMM protocol for interest rate swaps, launched fixed rate borrowing pools. The pools allow traders to convert variable positions into fixed positions and vice versa. Fixed borrowing is available for Aave USDC positions, Aave ETH positions, and Compound USDT positions. Voltz also allows users to trade interest rates with leverage.

Traders can now lock in fixed borrowing rates amid increased borrowing rate volatility as the merge approaches. Voltz uses a Concentrated Liquidity Virtual AMM for price discovery and a so-called Margin Engine, which manages underlying assets that collateralize traders and liquidity providers.

LooksRare Will Only Support ETH PoS

LooksRare announced that it will not support forked versions of Ethereum. LooksRare.org will go into maintenance mode during the merge. WETH will also be removed as a supported currency to ensure trades are not successful and to reduce the risk of replayed orders. The upgrade is expected to take approximately 15 minutes.

Anyone attempting to trade during the upgrade will receive trade execution errors. After the merge, LooksRare multi-sig operators will confirm that the PoW fork is no longer using Chain ID 1. The marketplace will then be made available on ETH PoS once WETH is re-enabled as a supported currency.