Smart contracts can’t see off-chain prices on their own. So how do those prices get on-chain?
DeFi protocols such as lending and derivatives rely on reliable price data to calculate collateral ratios and liquidations. If a price feed is wrong, it could trigger liquidations that shouldn’t happen.
I didn’t understand this back then, and the money I wasted could have paid for several hot pot meals.
Understand the principles before you act. Don’t make decisions on impulse.
$LINK 12.948 (+0.88%)
The above is compiled from public information. Please refer to the original text.
DeFi protocols such as lending and derivatives rely on reliable price data to calculate collateral ratios and liquidations. If a price feed is wrong, it could trigger liquidations that shouldn’t happen.
I didn’t understand this back then, and the money I wasted could have paid for several hot pot meals.
Understand the principles before you act. Don’t make decisions on impulse.
$LINK 12.948 (+0.88%)
The above is compiled from public information. Please refer to the original text.