RFC - Integrating eOracle to the Mendi Protocol
Author[s]: Mendi Core Team
Title: Integrating eOracle to the Mendi Protocol
Type: Request for comments
Abstract
eOracle, as the largest and the first AVS with 10.5B stake and 130 oracle validators, brings a new approach, cryptoeconomic security, to the Oracle space in DeFi. This is aiming to actually overcome the oracle problem that has hindered growth within the space in the past. eOracle shares the same vision and future-oriented builder approach as the Mendi community, which is why becoming an early adopter will ensure long-term impact for the Mendi DAO in the eOracle governance.
Integrating eOracle on the feeds that are currently using Chainlink, will benefit the Mendi protocol and community with better cryptoeconomics security, reliable feeds, and bring the ownership back to the users.
Proposal Summary
We propose the integration of the eOracle feeds in place of the existing Chainlink feeds on the currently deployed markets of the protocol.
This will not affect the markets that are currently fully supported with API3 feeds and will partly affect the markets that are currently supported by hybrid Chainlink - API3 feeds where the Chainlink feeds would be replaced by eOracle, but the API3 feeds would be kept in place.
Furthermore, this proposal is made with the long-term perspective in mind. As the DAO wants to move forward with Oracle Extractable Value (MEV recapture mechanism), the hybrid setup where the underlying primary feed (eOracle) acts as an anchor to protect against potential issues can be used for further integration.
As we are moving towards the Unified Liquidity Lending protocol in the future, economic security behind the feeds and MEV resistance are both important cornerstones that should be kept in mind.
eOracle Introduction
eOracle is the most secure and decentralized oracle network with 168,141 stakers, 130 validators and $10.5B staked ETH. eOracle introduces a novel blockchain architecture designed with restaking, leveraging the established trust network of Ethereum validators and staked ETH. eOracle's mission is to create a competitive marketplace where anyone can independently provide or consume data directly. Like the innovations and value enabled by permissionless AMMs, the eOracle marketplace will introduce new opportunities to the ecosystem. Build, provide, and use data permissionlessly with the security and benefits of Ethereum.
Motivation
The long-term vision with the proposal is driven by three factors, governance participation and shaping the future of eOracle, and expanding the treasury with a real-yield token as eOracle is planning a revenue sharing mechanism for its community.
The Mendi core team would represent the interest of lending protocols within the eOracle DAO to participate in a long-term future oriented vision that is proposed by the eOracle core team.
Additionally the DAO could potentially leverage the real-yield for costly future growth initiatives to benefit the stakers and holders further.
Lastly, the decentralization and cryptoeconomic security behind the eOracle network ties into the Ethereum-aligned future that the core team has started to implement with the Unified Liqudity Lending protocol.
Technical considerations
The core team has integrated multiple oracles since the launch of the protocol, therefore technical feasibility is not in question. The eOracle developer team can also provide review and technical support to the Mendi team, ensuring a smooth and secure integration that is seamless for the users.
Expected Timeline - OPTIONAL
- To be expanded if the RFC proceeds to an MIP
Key factors to consider with the proposal
The community should consider the future security of the protocol.
Conflict of Interest
There are no conflict of interests between the Mendi core team and this proposal.
Disclaimer: The Mendi Core Team has had multiple meetings with the eOracle team over the past months, that convinced us that we both share the same vision and future oriented approach in the space.
Next Steps
Outline the immediate actions and steps after the proposal’s submission, providing a clear and actionable roadmap for the governance process.
References and Links
https://app.eigenlayer.xyz/avs
Recent news:
eOracle is securing Etherfi $8B TVL and Layerbank $200M
https://blog.eoracle.io/decentralized-eoracle-securing-etherfi/
https://blog.eoracle.io/layerbank-integrates-eoracle-to-secure-its-200m-of-tvl/
Off-Chain Vote
Yes
2.1M MENDI62.1%
No
795.91K MENDI23.5%
Abstain
484.81K MENDI14.3%
Quorum:169%
Timeline
Nov 25, 2024Proposal created
Nov 25, 2024Proposal vote started
Nov 27, 2024Proposal vote ended
Nov 27, 2024Proposal updated