How does a DeFi protocol know when your collateral has dropped?
Using the spot price from a single DEX pool as an oracle price is risky: when the pool is small, one flash-loan trade could skew the price.
Practical knowledge won’t turn my life around overnight, but it can help me avoid a few pitfalls.
Understanding the principles helps you think more clearly before making a decision; it’s not for predicting whether prices will rise or fall.
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