diff --git a/CHANGELOG.md b/CHANGELOG.md
index d1421392b9..a3cf6a74b0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Features
 
+- program: increase stable coin oracle threshold ([#1526](https://github.com/drift-labs/protocol-v2/pull/1526))
+
 ### Fixes
 
 ### Breaking
diff --git a/programs/drift/src/state/oracle.rs b/programs/drift/src/state/oracle.rs
index b1b328dba7..218ac42d3c 100644
--- a/programs/drift/src/state/oracle.rs
+++ b/programs/drift/src/state/oracle.rs
@@ -321,9 +321,11 @@ pub fn get_pyth_stable_coin_price(
 
     let price = oracle_price_data.price;
     let confidence = oracle_price_data.confidence;
-    let five_bps = 500_i64;
+    let twenty_bps = 2000_i64;
 
-    if price.safe_sub(PRICE_PRECISION_I64)?.abs() <= five_bps.min(confidence.cast()?) {
+    if price.safe_sub(PRICE_PRECISION_I64)?.abs()
+        <= twenty_bps.min(confidence.cast::<i64>()?.saturating_mul(5))
+    {
         oracle_price_data.price = PRICE_PRECISION_I64;
     }
 
diff --git a/sdk/src/oracles/pythClient.ts b/sdk/src/oracles/pythClient.ts
index 464b975e9a..011612464b 100644
--- a/sdk/src/oracles/pythClient.ts
+++ b/sdk/src/oracles/pythClient.ts
@@ -75,9 +75,14 @@ function convertPythPrice(price: number, exponent: number, multiple: BN): BN {
 		.div(pythPrecision);
 }
 
-const fiveBPS = new BN(500);
+const twentyBPS = new BN(2000);
 function getStableCoinPrice(price: BN, confidence: BN): BN {
-	if (price.sub(QUOTE_PRECISION).abs().lt(BN.min(confidence, fiveBPS))) {
+	if (
+		price
+			.sub(QUOTE_PRECISION)
+			.abs()
+			.lt(BN.min(confidence.muln(5), twentyBPS))
+	) {
 		return QUOTE_PRECISION;
 	} else {
 		return price;