How does a lending protocol know how much your collateral is worth?
Lending and derivatives platforms rely on oracle prices to calculate collateral ratios and trigger liquidations.
Here’s the key point: When prices fluctuate sharply, oracle prices may briefly fall out of sync with exchange quotes, so leave a sufficient buffer in your lending position.
$LINK is the token for Chainlink, a decentralized oracle network. It’s currently at 10.391.
Only deposit funds you can afford to lose.
Lending and derivatives platforms rely on oracle prices to calculate collateral ratios and trigger liquidations.
Here’s the key point: When prices fluctuate sharply, oracle prices may briefly fall out of sync with exchange quotes, so leave a sufficient buffer in your lending position.
$LINK is the token for Chainlink, a decentralized oracle network. It’s currently at 10.391.
Only deposit funds you can afford to lose.