Oracle Manipulation

Security · Deep

An attack where an adversary artificially distorts the price reported by an on-chain oracle to exploit a protocol that trusts that price for lending, liquidation, or swap calculations. Common vectors include manipulating thin AMM pools to skew spot prices, amplified by flash loans for zero-capital attacks. Defenses: use time-weighted average prices, aggregate multiple independent sources, enforce staleness checks, and set maximum single-block price deviation thresholds.

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