# \[ARFC\] Pyth to support AAVE on Optimism as a secondary oracle

**URL:** <https://governance.aave.com/t/arfc-pyth-to-support-aave-on-optimism-as-a-secondary-oracle/14127>\
**Category:** Governance\
**Created:** [July 24, 2023, 8:10pm UTC](https://governance.aave.com/t/arfc-pyth-to-support-aave-on-optimism-as-a-secondary-oracle/14127 "2023-07-24T20:10:40Z")\
**Posts on this page:** 1\
**Showing post:** 2

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**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\
**Post date:** [July 25, 2023, 6:02pm UTC](https://governance.aave.com/t/arfc-pyth-to-support-aave-on-optimism-as-a-secondary-oracle/14127/2 "2023-07-25T18:02:30Z")

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As some will already know, TokenLogic voted NAY on the TEMP CHECK and the below explains why we will be voting NAY on the [ARFC] Snapshot.

Firstly, similar to [BGD’s comments](https://governance.aave.com/t/arfc-pyth-to-support-aave-on-optimism-as-a-secondary-oracle/13251/10), we do not see much value in this proposal given the fallback oracle would only be called if a Chainlink feed returns a negative or zero value. However, with the minimum threshold for Chainlink feeds configured to ensure a positive value above zero is returned, we don’t see a situation where the fallback would ever be called.

While we believe oracle security is extremely important to Aave’s robustness, we don’t believe this proposal provides any additional meaningful improvement over how Aave currently operates today but in fact, introduces additional resources to be accounted for. For example, while the proposal offers a [grant](https://governance.aave.com/t/arfc-pyth-to-support-aave-on-optimism-as-a-secondary-oracle/13251) to cover the costs of publishing Pyth data on Optimism for three months, it’s unclear who’s expected to cover the costs after this period and if this responsibility will fall to the DAO. We don’t see the benefit in spending valuable time and resources to do the integration work only to pay later for something that won’t be used.

Secondly, we have some general concerns around Pyth’s incentive design as an oracle provider, specifically their [close ties with historically predatory and opaque market makers](https://blockworks.co/news/what-tradfi-needs-to-make-the-multichain-future-a-reality), such as Alameda/FTX and [Jump](https://fortune.com/crypto/2023/05/15/jump-trading-billion-propping-up-terra-algorithmic-stablecoin-collapsed/)[.](https://blockworks.co/news/what-tradfi-needs-to-make-the-multichain-future-a-reality) These relationships pose a clear conflict of interest, where the entities reporting the market price of crypto assets are also actively involved with crypto market trading activity and therefore could be profit-motivated against the interests of Aave users.

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_[View the full topic](https://governance.aave.com/t/arfc-pyth-to-support-aave-on-optimism-as-a-secondary-oracle/14127)._
