The deeper I dig into TermMax, the more I pay attention not to profitability, but to where the protocol actually gets prices for its assets.🤷♂️
Turns out TermMax uses external oracles to value assets, and for some tokens it also has a backup source.
For example, for WBNB on BNB Chain, the documentation specifies an oracle heartbeat of 60 seconds, and for USDT — 21,600 seconds, i.e. 6 hours. 🚀
That’s where I started thinking.🤔 It turns out that even within a single protocol, the price update frequency can differ by hundreds of times depending on the asset.
The upside is obvious — the protocol doesn’t have to make up the price itself. The downside is also clear: a delay or an issue with an external source could potentially affect the calculations.
My conclusion: in DeFi, security isn’t only about the smart contract code. You also need to look at what data that code receives from outside. ⭐️
And have you ever checked where a DeFi protocol gets the prices for its calculations?👇
#termmax @TermMax
Turns out TermMax uses external oracles to value assets, and for some tokens it also has a backup source.
For example, for WBNB on BNB Chain, the documentation specifies an oracle heartbeat of 60 seconds, and for USDT — 21,600 seconds, i.e. 6 hours. 🚀
That’s where I started thinking.🤔 It turns out that even within a single protocol, the price update frequency can differ by hundreds of times depending on the asset.
The upside is obvious — the protocol doesn’t have to make up the price itself. The downside is also clear: a delay or an issue with an external source could potentially affect the calculations.
My conclusion: in DeFi, security isn’t only about the smart contract code. You also need to look at what data that code receives from outside. ⭐️
And have you ever checked where a DeFi protocol gets the prices for its calculations?👇
#termmax @TermMax
