@chapeau07

Price oracles are services that provide external data, such as asset prices, to decentralized applications (dApps) and smart contracts, enabling them to make decisions based on real-world information. In DeFi, oracles are crucial for functions like lending, borrowing, and decentralized exchanges, where the price of collateral or traded assets needs to be accurate and up-to-date. By sourcing data from multiple exchanges and aggregating it, oracles help mitigate manipulation risks and provide reliability. However, they also present a vulnerability: if an oracle is compromised, it could lead to incorrect pricing, causing financial loss or exploits within DeFi protocols. Therefore, ensuring oracle security and reliability is vital for the integrity of DeFi ecosystems.

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