Hmm balancer has a lot of reth liquidity. do they

have an oracle?

I think no, let's make a v1 oraclized pool for reth and vote for it

balancer pool implementations are kind of upgradeable right? can they not implement an oracle?

If not sealed off the controller of a pool can play with weights I believe. Reth uses an outside oracle (controlled by their msig?) to set weights in the pool for where liquidity should be deepest. "no, the [curve] v2 pools drift liquidity according to market movement don't they? we want it to move according to a fixed outside oracle" -jasper

I havent fully thought this through, but isn't it dangerous to ignore what the market thinks about the rETH peg? For example, if a large risk off scenario led to mass redemptions of rETH such that the rETH token contract is depleated, leading to mass rETH dumping on DEXs. Using an oracle, the liquidity will be centered around the exchange rate, but in this scenario the market would think the current fair price is much lower, pushing price lower and into thinner liquidity causing serious downside price volatility. For context, when RP minipools exit, all staking rewards and exited ETH flow to the rETH token contract. ETH continually flows into this contract as rewards are swept via partial withdrawals and as full exits occur, so the contract acts as an ETH holding tank that processes rETH redemptions. The contract is designed to hold a maximum of 1% of all rETH TVL. When it runs out, rETH redemptions halt until more minipools exit, and there rETH holders cannot force minipools to exit.

ah yes. you took the words out of my mouth