How does a lending protocol know when the value of your collateral has dropped?
Price feeds are generally updated when the price moves beyond a set threshold or after a certain amount of time.
When choosing a DeFi protocol, check which oracle it uses. The more concentrated its price feed sources are, the greater the risk.
$LINK is the token of the decentralized oracle Chainlink. Current price: 13.005.
If you understand, drop a 1. If not, leave a comment and keep asking.
#LINK
Price feeds are generally updated when the price moves beyond a set threshold or after a certain amount of time.
When choosing a DeFi protocol, check which oracle it uses. The more concentrated its price feed sources are, the greater the risk.
$LINK is the token of the decentralized oracle Chainlink. Current price: 13.005.
If you understand, drop a 1. If not, leave a comment and keep asking.
#LINK