PIP 14 — Divergent Oracle Prices

Proposal for adding more sources of oracle price records

Summary of Proposal

Advantages Of This Approach

Scenario 1: attacker wants to push the price of gold down to zero and buy it cheaply.normal (no attack):
- Miners of say GOLD: 1000
- Stakers say GOLD: 1003
______
deviation: 1.5
attacker controls 1 group:
- Miners say GOLD: 1
- Stakers say GOLD: 1000
_____
deviation: 499.5
Scenario 2: attacker is trickier, he pushes the price down a little (say 1%) to buy it cheaper. It's undetected by human. This is the hardest situation. 1.01^72 is still x2 their asset per day. 
1.005^72 is +40% their asset per day.
Solution: Tight deviation.
Example:
last block (no attack):
- miners of current block say GOLD: 1000
- peg holders say GOLD: 1003
______
deviation: 1.5
Scenario 2A: attacker changes 1% price
this block, attacker controls 1 group:
- Miners say GOLD: 990
- Stakers say GOLD: 1000
_____
deviation: 5.0
Scenario 2B: attacker changes 0.5% price
this block, attacker controls 1 group:
- Miners say GOLD: 995
- Stakers say GOLD: 1000
_____
deviation: 2.5

Future Iteration With Past + Current Miners

Scenario 1: attacker wants to push the price of gold down to zero and buys it cheaply.
normal (no hack):
- miners of current block say GOLD: 1000
- miners of last 100 blocks say GOLD: 1001
- miners of last 1000 blocks say GOLD: 998
- peg holders say GOLD: 1003
______
deviation: 1.802775637732
attacker controls 3 groups:
- miners of current block say GOLD: 1
- miners of last 100 blocks say GOLD: 1
- miners of last 1000 blocks say GOLD: 1
- peg holders say GOLD: 1050
_____
deviation: 454.23032428494
attacker controls 2 groups:
- miners of current block say GOLD: 1
- miners of last 100 blocks say GOLD: 1
- miners of last 1000 blocks say GOLD: 1000
- peg holders say GOLD: 1001
_____
deviation: 499.75012506252
attacker controls 1 group:
- miners of current block say GOLD: 1
- miners of last 100 blocks say GOLD: 999
- miners of last 1000 blocks say GOLD: 1000
- peg holders say GOLD: 1001
_____
deviation: 432.58026711814

Conclusion

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