Update on XAG pricing incident

Yesterday Chainlink skilled a pricing anomaly on their XAG/USD (Silver Ounce) worth feeds, you could find their submit right here. Synthetix consumes the XAG worth feed along with numerous different feeds Chainlink publishes on Ethereum mainnet. The anomaly was one in all human error and never information integrity or an exploit.

Regardless of the foundation explanation for the anomaly an incorrect worth on any asset poses vital danger to the Synthetix platform and SNX stakers. We can be reviewing this incident and implementing measures to make sure any future pricing anomalies are dealt with on the protocol stage. We can be documenting a number of SIPs (Synthetix Enchancment Proposals) over the brand new few weeks to deal with this challenge and enhance the redundancy of the protocol to pricing anomalies.

Throughout this incident there have been a number of merchants that exploited the mispricing to generate ~$36,000 USD of revenue. These trades have been on the expense of SNX stakers and Chainlink has provided to cowl these losses. This course of can be coordinated with Synthetix over the subsequent few days.

We’re dedicated to migrating the Synthetix worth feeds from our proprietary oracle to the Chainlink community, so will proceed to work with the Chainlink crew to determine areas of danger and guarantee we’ve methods in place to forestall an incident like this from occurring sooner or later.

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