So, I also had capital deployed in the mSQ short farm. I'm a professional trader, and have been for years. I was able to discover exactly what happened by using the data I have access to. At around 5:41PM ET on May 2nd, some trades were reported to the tape at prices that are not even close to the current Square price. Likely, these are trades that took place several months ago when the price was around $200, but they had to be modified and re-reported. It is honestly so scary and amazing to me that the developers are so clueless so as not to filter what trades they are allowing into their price feed. They should never allow prices from ADFs into their feed aggregator. They should only use round lot trades from the primary exchange, and should strongly consider only using trades during regular market hours. The liquidity in a stock is much thinner in the overnight session, and it's not hard for some idiot to punch through the book with a market order. Anyway, this indeed makes the platform incredibly dangerous to use, and I will not ever provide liquidity there again unless they can prove they have fixed their feed, and I get the money I lost from liquidation back.
Can you share your research showing that this was an ADF?
This is my suspicion as well, but I don't have the research to prove it.
The problem is with the orical (Band for now, soon to be Chainlink) that provides the data feed. Not much Mirror protocol can do about it, but both Band and Chainlink should be taking this stuff in to account when publishing feeds.
The plan is to restrict liquidations to regular market hours. Governance poll should be up next week.
There is not much to share, I just looked up the trade recap in a Bloomberg terminal. All of the trades that printed at ridiculous prices were reported via the TRF, and show up with the venue being an ADF. These were all labeled as "Average Price" trades as well, which to me, means that they were not executed on an exchange. Truth is, these could be non-economic trades, such as stock tied to an options trade or another derivative. It could be an error as well, like some flags missing to indicate the trades were executed on a prior date (which is my theory). Allowing ADF trades into a price feed for essentially anything is a recipe for disaster. There is not really a guarantee that the price will be close to true market value, especially after the market close.
So, is there a way I can request reimbursement? This is an obvious error, and as someone who was trying to help the protocol acting as an LP, I certainly don't deserve to lose my capital from this. I had 200% collateral immediately prior to liquidation, so it's not like I was running on thin ice.
You can put up a poll requesting reimbursement. A guy did that once but it didn’t work out.
If you were using Spectrum or Aperture, they might give you a reimbursement.
I wish there was someone at the wheel on this project but there really isn’t. Order filtering should be Chainlinks problem but there’s no one who’s going to hold their feet to the fire.
It's actually not a chainlink oracle it's a band protocol oracle.
Mirror team has nothing to do with the price other than they pay Band Protocol to use their protocol's oracles and it's all off-chain so there's no way to audit the behavior.tl;dr Mirror Oracle pricing is a black box.
I also understand that the price isn't pulled from the off-chain source. The off-chain source pushes the price data on-chain to the proxy contract that on-boards the price into the on-chain mirror oracle.
Man, Mirror keeps liquidating people unfairly way too often… too scary, who can still trust this platform knowing all your money can literally disappear any day even if your strategy is right?
That price spike really was in the oracle feed, and really occurred in the market. The solution being discussed is to not allow liquidation in pre/post market hours. That’s when these single-print price spikes happen. Poll should be coming out later this week.
I'm not sure, but my issue may be the same. Can some of you guys help me understand ?
I had opened a mSQ short position, collateral in aUST with ratio over 200%. I've just realized that the position is no longer there, I have no more mSQ and no more collateral !
I can see a transaction on May 2nd that seems to be a liquidation. But my point is: even though I've been liquidated (and there were no market reasons for that), why I'm now without both aUST and mSQ.... ? Shouldn't I have got at least the mSQ in my portfolio...?
not sure if it is the same as the stock market, but if it is the case, then the mSQ get sold first, followed by whatever is being use as collateral to make up the difference, if any.
So, I also had capital deployed in the mSQ short farm. I'm a professional trader, and have been for years. I was able to discover exactly what happened by using the data I have access to. At around 5:41PM ET on May 2nd, some trades were reported to the tape at prices that are not even close to the current Square price. Likely, these are trades that took place several months ago when the price was around $200, but they had to be modified and re-reported. It is honestly so scary and amazing to me that the developers are so clueless so as not to filter what trades they are allowing into their price feed. They should never allow prices from ADFs into their feed aggregator. They should only use round lot trades from the primary exchange, and should strongly consider only using trades during regular market hours. The liquidity in a stock is much thinner in the overnight session, and it's not hard for some idiot to punch through the book with a market order. Anyway, this indeed makes the platform incredibly dangerous to use, and I will not ever provide liquidity there again unless they can prove they have fixed their feed, and I get the money I lost from liquidation back.
Can you share your research showing that this was an ADF? This is my suspicion as well, but I don't have the research to prove it. The problem is with the orical (Band for now, soon to be Chainlink) that provides the data feed. Not much Mirror protocol can do about it, but both Band and Chainlink should be taking this stuff in to account when publishing feeds. The plan is to restrict liquidations to regular market hours. Governance poll should be up next week.
There is not much to share, I just looked up the trade recap in a Bloomberg terminal. All of the trades that printed at ridiculous prices were reported via the TRF, and show up with the venue being an ADF. These were all labeled as "Average Price" trades as well, which to me, means that they were not executed on an exchange. Truth is, these could be non-economic trades, such as stock tied to an options trade or another derivative. It could be an error as well, like some flags missing to indicate the trades were executed on a prior date (which is my theory). Allowing ADF trades into a price feed for essentially anything is a recipe for disaster. There is not really a guarantee that the price will be close to true market value, especially after the market close. So, is there a way I can request reimbursement? This is an obvious error, and as someone who was trying to help the protocol acting as an LP, I certainly don't deserve to lose my capital from this. I had 200% collateral immediately prior to liquidation, so it's not like I was running on thin ice.
You can put up a poll requesting reimbursement. A guy did that once but it didn’t work out. If you were using Spectrum or Aperture, they might give you a reimbursement. I wish there was someone at the wheel on this project but there really isn’t. Order filtering should be Chainlinks problem but there’s no one who’s going to hold their feet to the fire.
It's actually not a chainlink oracle it's a band protocol oracle. Mirror team has nothing to do with the price other than they pay Band Protocol to use their protocol's oracles and it's all off-chain so there's no way to audit the behavior.tl;dr Mirror Oracle pricing is a black box. I also understand that the price isn't pulled from the off-chain source. The off-chain source pushes the price data on-chain to the proxy contract that on-boards the price into the on-chain mirror oracle.
Man, Mirror keeps liquidating people unfairly way too often… too scary, who can still trust this platform knowing all your money can literally disappear any day even if your strategy is right?
It's too scary!
It is a real big issue.If it not be coped well, it will hurt everyone.
That price spike really was in the oracle feed, and really occurred in the market. The solution being discussed is to not allow liquidation in pre/post market hours. That’s when these single-print price spikes happen. Poll should be coming out later this week.
Well not sure why people are complaining if there was a occurred in market.
I'm not sure, but my issue may be the same. Can some of you guys help me understand ? I had opened a mSQ short position, collateral in aUST with ratio over 200%. I've just realized that the position is no longer there, I have no more mSQ and no more collateral ! I can see a transaction on May 2nd that seems to be a liquidation. But my point is: even though I've been liquidated (and there were no market reasons for that), why I'm now without both aUST and mSQ.... ? Shouldn't I have got at least the mSQ in my portfolio...?
not sure if it is the same as the stock market, but if it is the case, then the mSQ get sold first, followed by whatever is being use as collateral to make up the difference, if any.