GM Kujirans.
19 May 2023, 10:01
GM Kujirans 💙
In the interest of transparency, we would like to explain an issue that occurred this morning and the steps we have taken to prevent this happening again 👇
GHOST and $USK rely on an external price feed, provided by validators via our price-feeder. For the $KUJI price, we use the MexC API to fetch off-chain data which is then TWAP-ed. That price is fed on-chain and used to calculate loan health.
2 hours ago, MexC began reporting zero-values for a lot of their trading pairs, KUJI-USDT included. This dragged down the TWAP price of KUJI that was used for loans on GHOST. As a result, the price was reported at $0.40 for a short while, liquidating some positions that were otherwise healthy. MexCs API is now functioning correctly.
We are taking two steps to remedy this situation:
1) We are rolling out an updated version of the price-feeder that protects against zero-value responses from 3rd party APIs. This prevents this situation from happening again and provides an additional layer of security.
2) We will be airdropping $KUJI to all those affected by the liquidations, at a reference price of $0.75. Any users who were wrongfully liquidated will be made whole immediately.
Securing additional sources for the $KUJI price is also a top priority, and we will update the community on this matter. As we speak, we are tying up a listing of $KUJI on a large Arbitrum exchange that will provide another reliable price feed source to reduce this risk.
We are grateful this was brought to light now and has ended up a cheap security issue to remedy, boosting the security of GHOST as it grows. If you were liquidated this morning, we apologise for any inconvenience caused and have remedied the situation as quickly as possible 💙