How do blockchains get off-chain prices? Many people can't explain it!
Lending and derivatives protocols use prices provided by oracles to calculate collateral ratios and trigger liquidations.
Using the spot price from a single DEX pool as an oracle price carries significant risks: when the pool is shallow, a single flash loan transaction could skew the price.
Don't place an order just because everyone around you is buying.
$LINK 11.127（-0.61%）
This is not investment advice. Don't follow it.
Lending and derivatives protocols use prices provided by oracles to calculate collateral ratios and trigger liquidations.
Using the spot price from a single DEX pool as an oracle price carries significant risks: when the pool is shallow, a single flash loan transaction could skew the price.
Don't place an order just because everyone around you is buying.
$LINK 11.127（-0.61%）
This is not investment advice. Don't follow it.
