It can be quite easy to manipulate GPU prices - especially given only Vast and some small cloud support dynamic pricing of GPU on scale of 1hr, and you are using this for price feed. I can just rent every GPU on those platforms with like $1000/hr to wipe the whole short? Any thoughts on mitigating this?
Great question! I have been thinking about this. Reminds me of how Enron's traders would cause rolling blackouts in CA to drive up electricity prices. The current implementation winsorizes outliers but that isn't enough. Some fixes I see going forward
1. Implement additional providers and perhaps weight their contribution to the index by their inventory (harder for small providers to cause massive swings)
2. Use a Time-weighted settlement over 1-4hr periods to prevent rapid changes in spot
3. Verify data with bulk gpu compute marketplaces like ComputeExchange
4. Have third party services verify/or require some kind of "proof of rental" that gets sent to a registry. WTI/Brent has Platts and Argus that are price reporters who cross validate (similar mental model)
Do you have any more info on manipulating GPU rental prices? I would like to read more on that.
It can be quite easy to manipulate GPU prices - especially given only Vast and some small cloud support dynamic pricing of GPU on scale of 1hr, and you are using this for price feed. I can just rent every GPU on those platforms with like $1000/hr to wipe the whole short? Any thoughts on mitigating this?
Great question! I have been thinking about this. Reminds me of how Enron's traders would cause rolling blackouts in CA to drive up electricity prices. The current implementation winsorizes outliers but that isn't enough. Some fixes I see going forward 1. Implement additional providers and perhaps weight their contribution to the index by their inventory (harder for small providers to cause massive swings) 2. Use a Time-weighted settlement over 1-4hr periods to prevent rapid changes in spot 3. Verify data with bulk gpu compute marketplaces like ComputeExchange 4. Have third party services verify/or require some kind of "proof of rental" that gets sent to a registry. WTI/Brent has Platts and Argus that are price reporters who cross validate (similar mental model)
Do you have any more info on manipulating GPU rental prices? I would like to read more on that.
Could look into Uniswap's price oracle mechanism: https://hacken.io/discover/uniswap-v4-truncated-oracle/ to see how they mitigate oracle price manipulation.