TRADING & AMMS

Price Oracle

Definition

Price oracles provide real-time external price data to smart contracts, enabling DeFi protocols to make decisions based on accurate market prices for lending, derivatives, and other applications.

Example

💡 Example

Chainlink price oracles supply ETH/USD prices to MakerDAO for determining collateral values and liquidation thresholds.

Risks to Consider

⚠️ Risks
  • Oracle manipulation
  • Data lag
  • Price feed failures

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