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A comment on Tether starting to lose its peg too, after Terra did. Parent comment

Re:Tether starting to lose its peg too, after Terra did by bspammer on Thursday May 12, 2022 @04:57AM (#31351066)
One thing I don’t understand here: where does the smart contract get the information of the current luna/usd exchange rate? It can’t be an api call surely, it must be on-chain somehow.
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Re:Tether starting to lose its peg too, after Terra did by charcircuit on Thursday May 12, 2022 @07:42AM (#31352527)
Validators vote on the current exchange rate.

https://docs.terra.money/docs/develop/module-specifications/...

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Re:Tether starting to lose its peg too, after Terra did by Sandworm5639 on Thursday May 12, 2022 @09:28AM (#31353843)
Do I understand this correctly: there's no inherent incentive to put the "correct" price, they just need to agree with each other. Essentially playing "Guess 2/3 of the average" but it's just "Guess the average".
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Re:Tether starting to lose its peg too, after Terra did by charcircuit on Thursday May 12, 2022 @07:10PM (#31361194)
Validators have staked a lot of LUNA and it's in their best interest not to crash the ecosystem.
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Re:Tether starting to lose its peg too, after Terra did by bspammer on Thursday May 12, 2022 @07:48AM (#31352573)
Ah, that makes more sense. Thanks for the link, all this stuff is so interesting from a thought experiment point of view.
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Re:Tether starting to lose its peg too, after Terra did by charcircuit on Thursday May 12, 2022 @06:21PM (#31360809)
It's really fascinating all of the stuff that exists or at least has been tried out in the cryptocurrency space.
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Re:Tether starting to lose its peg too, after Terra did by buzzin_ on Thursday May 12, 2022 @08:00AM (#31352712)
Miners put the price (in dollars) in the blocks, and the medium price is taken as the price. You get penalized if the price you put in is 1 standard dev. or more off. You get 1% less of the block award you would get normally.
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Re:Tether starting to lose its peg too, after Terra did by kevingadd on Thursday May 12, 2022 @07:15AM (#31352300)
Things like this rely on off-chain "oracles"
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Re:Tether starting to lose its peg too, after Terra did by bspammer on Thursday May 12, 2022 @07:41AM (#31352520)
I know the thing is crashing and burning as we speak, but that seems like a crazy single point of failure for something claiming to be decentralized...

What if the oracle has downtime?

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Re:Tether starting to lose its peg too, after Terra did by rawoke083600 on Thursday May 12, 2022 @09:58AM (#31354268)
Many Many nodes :) i.e distributed
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