Price oracle manipulation can distort token prices and lending rates, posing a significant threat to DeFi smart contracts.
How can smart contracts ensure accurate and reliable price feeds, especially during volatile or low liquidity periods?
This issue arises while working on a DeFi lending platform. Decentralized oracles pulling data from multiple sources help reduce reliance on a single provider.
Cross-referencing data and applying time-weighted average pricing (TWAP) are being used to stabilize price inputs.
However, risks such as flash loan attacks and market manipulation persist. Are there additional methods to secure price oracles within smart contracts?
Suggestions on reliable oracle networks, verification techniques, or proven strategies from successful DeFi projects are welcome.
Any detailed insights on strengthening price feed security would be appreciated.