[SIPS-093] Upcoming Proposal to Update stETH Pricing
This forum post is to discuss the upcoming proposal to update stETH pricing in the price router.
Currently, Cellars price stETH using a Uniswap V3 TWAP. While this approach produces a smoother price than using a Chainlink oracle, stETH price is still somewhat volatile.
This proposal is to deploy a new pricing mechanism for stETH: assume a 1:1 peg within a reasonable range, along with failsafes if price deviates significantly from the historical range. This approach of assuming a 1:1 peg has become an industry standard: Instadapp’s iETH, Yearn’s yETH, and Aave’s lending markets all make this assumption.
The proposed pricing change will have a significantly positive effect on share price volatility for RYETH, RYBTC, and TurboSTETH.
If accepted, a Steward update will enable the strategist to call cachePriceRouter on RYETH, RYBTC, and TurboSTETH.