If STP.04 passed we propose to use TSO signals to convert “non USD” pairs.
XRP/USD price should be done converting all “non USD” pairs using the latest TSO price
XRP/USDT using latest TSO USDT/USD price
XRP/USDC using latest TSO USDC/USD price
We therefore propose NOT to use “non USD” pairs that do not have an associated TSO like for example XRP/BUSD and so on
[Update: we removed “non stablecoins” pairs from the example above]
So BUSD should not longer used then.
I get that all TSOs get more precise then using the same USDT/USD and USDC/USD.
But is there a benifit of doing this?
And i remember a discussion that we should not use USDT at all because the TSOs are all against USD.
What about that?
Our proposal is basically to standardize conversions thanks to the introduction of oracles for stablecoins.
It is clear that without them this proposal could not have been made, which remains open to discussions and ideas.
I like that idea
Let’s see what the others have to say.
I did this on songbird for a bit, I found that USDT/USD trades didnt happen that much, menaing the XRP/USDT → USDT/USD mgiht be out using an old conversion rate.
I found you were better off using BTC/USD e.g
XRP/BTC → BTC/USD
as BTC is more liquid…
It could work for stablecoins, but if you use the FTSO BTC price of 3 minutes ago to convert a current XRP/BTC rate it’d generate a wrong price.
In a depeg event where the market is completely unstable even for a stablecoin the price from 3 minutes ago is most likely wrong.
Yes, I shoudl clarify, I mean using the BTC/USD price that you generate rather than the FTSO’s as its 3 mins out…basically off chain data
Personally, 4dads does not use any non-USD/stable pairs… we believe the conversion process and volatility are too many hops to reflect true USD pricing… Consider XRP/BTC on an exchange without a BTC/USD Pair… your hops are: XRP/BTC → BTC/USDT → USDT/USD… I do not criticize other approaches and feel free to do what ya’ll like, but once you get into non-stable pairs, I feel like we are losing true accuracy through various conversion approaches and implementing unnecessary complexity that could be prone to errors.
we have modified and updated the post by accepting the advice of some providers by modifying the example and the proposal
Yes but it would be likely wrong in any case, the safety measure could be adopted on TSO price rather than “live” data.
We support these edits – thanks EU team.
I personally think we should just stick with USD markets, however I find doing this:
Is more laggy (Off chain data) - reason being many users tend not to convert back from USDT to USD.
Seems to provide a better representation of the price as BTC to USD is more liquid than USDT to USD
While I agree with you Moe, playing devil’s advocate, the USD liquidity and pairs are limited to certain exchanges – are we really reflecting accurate prices when most liquidity is on stable equivalents?
depends how far we take the spec, the specification never asked us to take in to account liquidity…only said all prices should be in USD.
just commented after an edit (I do not agree with XRP/BTC->BTC/USD) – agreed on XRP/USD (thought you meant USD pairs only)
just for clarity, I believe we should only stick with USD markets
EU, if we want to take this one step further, let’s give guidance on depeg protection thresholds as well… what can we all agree on for thresholds that classify a ‘depeg’ event (as a global rule for all stables)
for transparency, our stable feeds cut off at <=.98 and >= 1.02 (wide range, we know)… but let’s get in agreement so we can all play by the same rules and protect the network.
yep I think this is the most important thing