📌 Technical principles | Oracles
· What it is: Lending and derivatives protocols rely on oracle-reported prices to calculate collateral ratios and execute liquidations.
· Why: Using the spot price of a single DEX pool as a price feed is risky: when liquidity is shallow, a single flash-loan operation can skew the price.
· Practical tip: During sharp market volatility, oracle prices may temporarily diverge from exchange order books, so leave a larger safety buffer in lending positions.
$LINK 12.876（+0.91%）
#LINK
Personal notes, not a recommendation to trade.
· What it is: Lending and derivatives protocols rely on oracle-reported prices to calculate collateral ratios and execute liquidations.
· Why: Using the spot price of a single DEX pool as a price feed is risky: when liquidity is shallow, a single flash-loan operation can skew the price.
· Practical tip: During sharp market volatility, oracle prices may temporarily diverge from exchange order books, so leave a larger safety buffer in lending positions.
$LINK 12.876（+0.91%）
#LINK
Personal notes, not a recommendation to trade.