What is this about?

This discussion revolves around a proposal by Bgdlabs for operational updates to different oracle aspects across Aave instances¹. The proposal includes unifying the pricing of WBTC based on a WBTC feed, activating the Price Oracle Sentinel on Aave v3 Optimism, and updating the Generalized price sync components, specifically for LSTs¹. The proposal also includes configuring the deprecated fallback oracle address to address ⁰ on Aave v3 and other legacy instances for operational consistency¹³.

How is the community reacting?

The community has shown strong support for the proposal. ChaosLabs expressed full support and discussed the benefits of the update, particularly the decreased likelihood of liquidations². Oneski22 sought clarification on the activation of the Price Oracle Sentinel³, and MarcZeller expressed gratitude for the update and pledged to vote accordingly⁶. Portkey also thanked BGD for their consistent innovation and upgrades⁸. Gauntlet expressed excitement about the update¹¹.

Why this is positive?

The proposed updates are expected to bring about consistency across Aave instances and decrease the likelihood of liquidations. The activation of the Price Oracle Sentinel on Aave v3 Optimism will prevent new borrowings and liquidations from being processed if the network infrastructure is down, giving users a grace period to refill their positions and avoid liquidation¹. The community's positive reaction and support for the proposal also indicate its potential benefits.

Why this is negative?

While the proposal has been largely well-received, it does involve some complexities. For instance, more time needs to be allocated to study the pricing dynamics of the on-chain exchange rate of cbETH, so it will not be included in the proposal⁵. However, this is a minor issue and does not detract from the overall positive impact of the proposed updates.