Composite Asset Oracles:

How does @NeriteOrg handle the slight discount which @TheTNetwork's tBTC token trades at?

tBTC is backed 1:1 by BTC.

But the price floats slightly, and there's usually a slight <1% discount. Right now BTC is $94,520 vs $94,033 for each tBTC.

If we use the price of tBTC in our oracles for lending on @NeriteOrg, the slight discount will be arbitraged during stablecoin redemptions and we will leak value. We HATE leaking value.

Instead, we use an @Api3DAO oracle to get the price of both tBTC and BTC.

We choose a price deviation that we're okay with based on above data. If the price difference is within 2%, then there is no depeg happening.

Then when a redemption is happening we can use the higher price of the two, which is the real price.

These kind of small optimizations can have a huge impact on the capital efficiency of the protocol, and determine whether the whole system works or not.