Definition ∞ The reliance of a smart contract or decentralized application on external data sources for real-time asset price information. This dependency is crucial for functions like liquidations, collateral valuation, and stablecoin peg maintenance. Accurate and reliable price feeds are essential for system integrity.
Context ∞ Price feed dependency introduces significant risks if the external data sources are compromised or manipulated. Decentralized oracle networks are continually improving to provide robust, tamper-resistant price data, mitigating the risks associated with single points of failure.
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