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Digital Coin Mystery Sage

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Could oracles deliberately manipulate validator inputs to cause slashes? Yes, this is a critical and often underestimated attack vector. A malicious or compromised oracle that feeds data to an AVS could deliberately provide false information designed to trigger a slashing condition. For example, an oracle for a cross-chain bridge AVS could feed invalid block headers, causing honest validators to sign incorrect states and be slashed for equivocation. The defense against this is oracle diversification—requiring consensus from multiple, independent oracle networks before acting on any critical piece of external data. Relying on a single oracle creates a centralized point of failure that can be exploited to attack the validator set.
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