Circuit breaker on price deviation
Frax Finance's assessment for RD-F-057 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Fraxlend implements a dual-oracle divergence halt: if the two oracle feeds diverge beyond a threshold, borrowing is halted — this is functionally a circuit breaker. However, the specific bps threshold is governance-controlled and not confirmed from on-chain reads. sfrxETH has a 30% bound (sfrxEth will never be overvalued by more than 30%). USDC/USDT feeds have no confirmed circuit breaker. Yellow because circuit breaker exists for Fraxlend (the highest-risk path) but specific threshold is unconfirmed and stablecoin feeds have no confirmed circuit breaker.
Sources #
- DocsFrax Oracle OverviewFrax Oracle overview — dual-oracle divergence halt: 'puts a halt to borrowings if prices diverge by more than a small few percentage points'retrieved 2026-05-17
- Frax Oracle Advanced ConceptsFrax Oracle advanced concepts — frxEth/sfrxEth never overvalued by more than 30% (price bounds)retrieved 2026-05-17
Methodology #
Determine whether the protocol halts or reverts if the oracle-reported price deviates by more than X% from a reference within Y blocks.
See the full factor methodology and distribution across all protocols →