Treehouse Protocol
  • The Decentralized Fixed Income Layer
  • Overview
    • Treehouse Architecture
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  • tETH
    • Introduction
    • Architecture
      • Yield Optimization
      • Gas Optimization
      • Token Accounting
      • Deployment Process
      • Redemption Process
      • Safety Mechanisms
      • Profitability Assessments
    • Risks
      • Counterparty Risks
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      • Overutilization Risks
      • Regulatory Risks
      • Smart Contract Risks
    • Security
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      • How to Deposit
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        • Below Redemption Band
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          • Fast Redemption
      • How to LP
      • Referral System
      • How to Bridge
    • Key Addresses
  • DOR
    • Introduction
    • Key Design Principles
    • Stakeholders
      • Checks & Balances
    • Consensus Mechanism
    • Payout Mechanism
      • Panelist Pool
      • Delegator Pool
      • Payout Example
      • Payout in DORs with Multiple Tenors
    • Slashing Mechanism
      • Slashing Formula
      • Distribution of Slashed Tokens
      • Slashing in DORs with Multiple Tenors
      • Exceptional Cases
    • Glossary
    • Applications
    • Appendix
  • TESR
    • Treehouse Ethereum Staking Rate (TESR)
    • Ethereum’s Proof of Stake (PoS) Mechanism
      • Consensus Layer Rewards
        • Attestation Rewards
        • Sync Committee Rewards
        • Proposer Rewards
      • Execution Layer Rewards
        • Priority Fees/Tips
        • Maximal Extractable Value (MEV) Bribes
    • Observation Period
    • Publication Time
    • Index Calculation
    • Data Precision
    • Disruptive Events To Index Calculations
      • Ethereum Fails to Finalize Blocks
      • Changes to the Staking Reward Mechanism
      • Too Few Validators
    • Pre-publication Reliability Checks
      • Rate Volatility Check
      • TESR Component Sanity Data Check
    • Governance
      • Rate and Methodology Adjustments
      • Monitoring
      • Cessation
      • Licensing and Distribution
    • Data Sources
    • Decentralization
      • How Consensus is Reached?
    • Get Published Rates
      • API
      • Smart Contract
  • DOR Panelist Terminal
    • Panelist Submission Guide
  • TELR
    • Treehouse Ethereum Lending Rate (TELR)
  • Methodology
  • Data Sources
  • Market Exclusion Criteria
  • Weighting Scheme
  • Update Frequency
  • Get Published Rates
    • API
  • TEBR
    • Treehouse Ethereum Borrowing Rate (TEBR)
  • Methodology
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  • Weighting Scheme
  • Update Frequency
  • Get Published Rates
    • API
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  1. tETH
  2. Risks

Oracle Risks

PreviousLiquidity RisksNextOverutilization Risks

Last updated 10 months ago

Lending platforms face inherent oracle risks stemming from their dependency on obtaining accurate and timely pricing data. Any discrepancies in pricing or delays in updates could pose substantial risks. Should an Oracle system deliver erroneous data, the strategy may face a potential for forced liquidation, resulting in the loss equaling (1 - LTV) + LTV x De-peg %.

Refer to the section for more information.

De-pegging Contingency Plan