[BNB Chain, Ethereum, Arbitrum One, Base] DeviationSentinel — 2026-08 Parameter Adjustment

This proposal recalibrates the DeviationSentinel on all four chains where it is deployed. Deviation thresholds are standardised at 5% across every monitored market, and fourteen markets are repointed to deeper reference pools.

Background

The DeviationSentinel compares the Venus oracle price of a market against the live price in a reference DEX pool, and automatically restricts the market when the gap exceeds a configured threshold. Operating experience has surfaced two sources of false positives: thresholds tight enough to activate on ordinary market noise rather than on a genuine oracle problem, and reference pools thin enough that a single moderate trade moves the measured price.

Both are addressed here. At a 5% threshold, a market priced at 1.00 USD by the oracle needs its reference pool to print below 0.95 USD or above 1.05 USD before any restriction applies — wide enough to absorb routine pool movement, still narrow enough to catch a feed that has genuinely broken. Markets whose reference pool is thin or quoted in a volatile asset are moved onto deeper, stablecoin-quoted pools. Where two markets end up sharing a pool, a deviation in that pool can restrict both at once; this is the same behaviour already present for the shared pools in use today.

Proposed Changes

Chain Markets Threshold Reference pool
BNB Chain USDC 1% → 5% → PancakeSwap V3 USDT/USDC 0.05%
BNB Chain USDT 3% → 5% → PancakeSwap V3 USDT/USDC 0.05%
BNB Chain U, USD1, lisUSD 1% → 5% unchanged
BNB Chain SolvBTC, slisBNB, wBETH 3% → 5% unchanged
BNB Chain FDUSD 10% → 5% unchanged
BNB Chain TUSD monitoring disabled unchanged
Ethereum USDC, USDT, DAI 1% → 5% → Curve 3pool
Ethereum crvUSD 1% → 5% → Curve USDT/crvUSD
Ethereum sUSDe 1% → 5% → Curve crvUSD/sUSDe
Ethereum sUSDS 1% → 5% → Curve sUSDe/sUSDS
Ethereum WBTC 3% → 5% → Uniswap V3 USDT/WBTC 0.30%
Ethereum LBTC 3% → 5% → Uniswap V3 WBTC/LBTC 0.01%
Ethereum tBTC 3% → 5% → Curve WBTC/tBTC
Ethereum USDe 1% → 5% unchanged
Ethereum USDS 10% → 5% unchanged
Ethereum WETH 10%, unchanged → Uniswap V3 WETH/USDT 0.30%
Arbitrum One USDC, USD₮0 1% → 5% unchanged
Arbitrum One WBTC 3% → 5% → Uniswap V3 WBTC/WETH 0.05%
Arbitrum One ARB 10%, unchanged → Uniswap V3 ARB/WETH 0.05%
Base USDC 1% → 5% unchanged
Base cbBTC, wstETH 3% → 5% unchanged

DAI on BNB Chain is already disabled and is not affected. WETH and ARB receive a deeper reference pool while keeping their existing thresholds.

Summary

If approved, this proposal sets the deviation threshold to 5% on 26 markets, repoints 14 markets to deeper reference pools, and disables monitoring for TUSD on BNB Chain. No contracts are deployed, no permissions are granted or revoked, and no collateral factor, supply or borrow cap, or interest rate parameter is affected.

We welcome community feedback on this proposal ahead of submitting it for a VIP vote.

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