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It just scares me when you say things like this (linked tweet) because if projects are really going to be using serum as their only source of price data...
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To be clear:
1) I think they should use a sanitized version of it
2) Serum is on-chain. That makes it *way* different from the cases you cite; a lot of the problems you might worry about go away (at least for other projects on Solana).
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to be clear there are still a lot of nuances here but many of your points don't really apply to on-chain oracles that you can trade against composably in real time with small fees.
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Having the data being generated on-chain doesn't necessarily mean it's trustworthy
There have been numerous incidents involving DEX-based price oracles that led to millions in user funds getting lost
Promoting their usage is just downright dangerous in my opinion
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1) I think this is very different on Ethereum vs Solana. When it takes minutes to trade on a DEX and lots of tx's fail, you can't reliably hedge; that's way easier on Serum.
2) A lot of this is solved using EWMAs. E.g. mid(last, bid, offer), bounded by 5% away from 5m EWMA.
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This Tweet was deleted by the Tweet author. Learn more
As are oracles on Ethereum layer 2, the issue here isn't the speed of the underlying blockchain, it's the market coverage and tamper resistant of the oracle price feed
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Yup! Serum oracles also won't work trustlessly --> Ethereum, or vice versa.
Sounds like we need some type of blockchain agnostic decentralized oracle network 🤔 hm maybe one day
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Aren't there any deployments of SERUM DEX using ChainLink as the oracle?
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