A big part of our research has been focused on making oracles more resilient to potential attacks.
The recent attack that Synthetix experienced, demonstrates that there can be severe risks, if the data-sources of validators become compromised.
A potential defence against this type of attacks is for validators to implement a circuit breaker as part of their voting system.
This paper proposes a circuit breaker design, which would encourage validators to abstain from votes, when market conditions are extremely unusual. This is still work in progress, so any feedback/suggestions will be much appreciated!
terra_circuit_breaker.pdf (424.8 KB)