Price Feed Exploit

Definition ∞ A price feed exploit targets vulnerabilities in the data sources or mechanisms that provide real-time price information to smart contracts. Such an attack manipulates the reported price of an asset, leading to incorrect liquidations, unfair swaps, or other financial losses within decentralized applications. These exploits often leverage oracle systems that supply off-chain data to on-chain protocols. Securing price feeds is paramount for the integrity of DeFi operations.
Context ∞ The discussion surrounding price feed exploits frequently addresses the critical importance of robust and decentralized oracle networks for securing decentralized finance protocols. A key debate involves designing oracle systems that are resistant to manipulation and provide accurate, timely data. Future developments will focus on implementing multiple redundant data sources, cryptographic proofs for data integrity, and decentralized governance for oracle updates.