A price oracle is a digital service that provides external price data to smart contracts on a blockchain. Since blockchains are deterministic and isolated systems, they cannot inherently access real-world information like current asset prices. Oracles act as a bridge, fetching and verifying price feeds from various sources to ensure smart contracts can execute based on accurate, up-to-date market data. They are critical for decentralized finance applications.
Context
The context for price oracles often appears in news related to the security and reliability of decentralized finance (DeFi) protocols. Discussions focus on the potential vulnerabilities of single-source oracles and the development of decentralized oracle networks to mitigate these risks. Key considerations include data accuracy, tamper-resistance, and the economic incentives that ensure oracle integrity.
A sophisticated price oracle manipulation allowed an attacker to illicitly inflate asset values, enabling the unauthorized borrowing of significant protocol funds.
A critical flaw in a newly deployed ERC4626 vault's exchange rate calculation allowed an attacker to drain $9.8 million by manipulating perceived collateral value.
A single-source price oracle vulnerability, exploitable via flash loans, allowed an attacker to manipulate asset valuation and drain liquidity, jeopardizing user capital.
A critical flaw in Cetus Protocol's concentrated liquidity market maker pricing mechanism enabled an attacker to manipulate token values, draining significant assets and underscoring systemic risks in nascent DeFi ecosystems.
A critical vulnerability in NGP's single-source price oracle allowed flash loan manipulation, enabling the illicit draining of $2 million and an 88% token value collapse.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
