Summary
Kill gauges for the following Llamalend markets that have unsafe oracles by setting gauge killed as true:
Abstract
There are five Llamalend markets on mainnet that use oracle pools we consider unsafe due to having less than $100K TVL. These Llamalend markets are: RCH-long, ETHFI-long, UwU-long, ezETH-long, and swBTC-long. Therefore, these markets should have their gauges killed to deter market activity.
Motivation
Until recently, all LlamaLend markets had been deployed with immutable oracles that typically reference one or more Curve pools for oracle pricing. If the market references a pool that has been deprecated or otherwise no longer maintains a TVL that make it a safe price source, the lend market may be at greater risk of oracle manipulation and should not be used. This limitation of LlamaLend markets has been addressed in recent market deployments with the introduction of an oracle proxy which allows the DAO to assign a new oracle in case of pool migration.
As a heuristic, we consider pools with over $200k TVL to be reasonable oracle sources, while pools with under $100k indicate unhealthy liquidity levels. Although the EMA on pool oracles protects against manipulation, we are particularly concerned that marginal pools may not have active arbitrage to ensure reliable pricing in those pools and it may be relatively inexpensive for a multi-block manipulation attempt. For reference, a $500 ETHFI to weETH swap through the ETHFI/weETH pool would decrease the spot price of ETHFI by ~ 27.7%.
All of the markets included in this proposal have 0 gauge weighting, and with the exception of UwU-long are basically empty markets. The UwU market has ~$45k supplied and ~$35k debt- this vote will not affect suppliers or borrowers in the market.
For reference, the TVLs over time of the pools underlying the markets in this proposal are given here:
Vote Actions
This vote is to kill the gauges for RCH-long, ETHFI-long, UwU-long, ezETH-long, and swBTC-long Llamalend markets.
Actions = [
#RCH-long kill
('0x11C2a9fac65809c527bcb04FB7EC52080F053dc0', "set_killed", True),
#ETHFI-long kill
('0x3Ba9d8792Fa703eA21B6120E675aA34Bda836AEB', "set_killed", True),
#swBTC-long kill
('0x34b3a436EEFaB94CF95dfE20700c43330a5208E7', "set_killed", True),
#ezETH-long kill
('0xAD52A81D8aeA772b8D21Fe2bC573Ef388bDDaC69', "set_killed", True),
#UwU-long kill
('0xad7B288315b0d71D62827338251A8D89A98132A0', "set_killed", True),
]