The Standard

Description

Chainlink advises that all Optimistic Layer 2 (L2) oracles refer to the Sequencer Uptime Feed to verify the availability of the sequencer before relying on the data provided by the oracle.

If the Arbitrum Sequencer experiences downtime, the oracle data might not remain current and could potentially become outdated. Despite this, users still retain the ability to directly engage with the protocol using the Layer 1 (L1) optimistic rollup contract. For further details, you can refer to Chainlink's documentation on L2 Sequencer Uptime Feeds.

Impact

In the event of sequencer downtime, the oracle relies on stale prices, potentially resulting in liquidating assets at an incorrect price:

• If the retrieved price is lower than the actual price, the position holder will pay less than they should.

• Conversely, if the retrieved price is higher than the actual price, the position holder will pay more than they should.

Recommended mitigation

Consider adding missing checks for stale data.