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Basis Point Oracle

The purpose of the basis point oracle is to determine if loans can be redeemed for the sake of improving peg stability of MUSD on the Moria Protocol.

The oracle sets a maximum basis points, where all loans below or equal to its determined value are allowed to be redeemed.

Update process

As of May, 2025, the logic of the basis point oracle is as follows:

The oracle maintains a floor basis points of 99 bps (0.99%).

The oracle targets an update every 10 minutes.

The update logic is as follows:

  • Check price on Cauldron
  • Check USD/BCH price.
  • If price on Cauldron is 1 MUSD >= 0.99 USD; set floor basis points.
  • If price on Cauldron is 1 MUSD < 0.99 USD; set basis points such that total redemption of minimum 1000 MUSD to be redeemed from loans.

If price check for cauldron or price check of USD/BCH fails; follow logic as if 1 MUSD < 0.99.

Cost of using oracle

The oracle takes per now a fixed fee of 1000 sats per use (eq ~$0.01 at time of writing).

Process changes

The update process may change at any time as required based on future development and community feedback. Join the discussion at Moria Telegram group.