Black Thursday Simulation

Description of the Black Thursday Simulation for Compound

The simulation will focus on a 53% price decline for WETH (over a period of 1000 blocks ) within the USDC market on the Ethereum chain. The USDC market in the Ethereum chain has a total value locked (TVL) of approximately $1 billion and a wrapped Ether (WETH) holds a significant share with the supply of roughly $440 million. ( As of May 9,2024 )

The Chainrisk Cloud platform specifically targets the Compound V3 Price Oracle, which relies on Chainlink's Price Feed. By altering the return values of this oracle, the simulation mimics the price drop associated with a Black Thursday event for the WETH asset.