Invitation to Tender: Oracle for MCDEX DAO Pool

Background

We are about to launch MCDEX V3 on Arbitrum rollup. The permissionless nature of our protocol shifts the power of flourishing the ecosystem to our dear community. The liquidity pools and perpetual markets are run by `operators’, who are the creators and managers of perpetual markets, and the market could be anything with an index. Therefore, a price feed is required. Operators are in charge of finding and choosing an appropriate oracle for their market.

Approved by the community in proposal 21, The MCDEX foundation will lead the process of searching for and integrating an oracle for the pool operated by MCDEX DAO.

The MCDEX DAO will create and operate a USDC pool. Initially, we will have mainstream markets like ETH and BTC and gradually expand to other assets through the governance of the DAO. Thus, we are initiating the first round of tender. The subsequent tender will come up when we plan to add new markets to the DAO pool.

Purpose of Tender

  1. As an exchange for perpetual trading, a precise index price helps decrease the spread, which is essential to optimizing the trading experience
  2. To protect our markets from price manipulation, we seek an oracle solution that is as decentralized as possible
  3. To ensure the quality and stability of our platform, the oracle service has to be stable and strong

Requirements

1st round Oracle tender: ETH and BTC price

Oracle providers should obtain the data from multiple sources in a decentralized way, and provide it on the Arbitrum mainnet.

Minimum Requirements:

Deviation should be less than or equal to 0.05%

Data should come from no less than 3 major liquidity sources (DEX/CEX)

Availability: 99.99% (availability refers to the value of available time in service divided by overall service time)

Oracle should be decentralized enough such that the provider has more than or equal to 10 nodes.

Submission Requirement

Oracle Providers are required to submit a tender via email to oracle@mcdex.io before June 12th 2021 with the following information to must be included:

1.Introduction of provided oracle solutions
1.1.Solution Overview
1.2.Technical documentation
[Technical documentations can be any format (e.g. paragraph, chart, link and etc.) as long as it helps us to understand your solution from the technical standpoint]

2.Key indicators of oracle service
[ If your product cannot meet our minimum requirements listed in the requirement section, please explain the reason and the best offer your production can provide]
2.1.Price deviation
2.2.Service availability
2.3.Data source
2.4.Explanation of how decentralized and secured
2.5.Any key indicators or features not listed but will help us to evaluate

3.Service fee

4.Successful cases (please provide references for past cases)

Evaluation

1.Submitted proposal must include all bullet points above
2.The provider meets the submission requirements as indicated in the applicable RFS. Failure of the provider to comply with the submission requirements may eliminate its Response from any further consideration.
3.A Response may be disqualified from consideration because MCDEX team determined it was non-responsive at any time during the review process.

Timeline

During the tender process, the MCDEX foundation will lead the review and evaluation of the submissions and announce the winners of the tender.

  • Submission Deadline: June 12th, 2021
  • Review & Evaluation: For around one week
  • Announcement of bid winner(s): Before the mainnet is ready for users
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