📚 DeFi Day 36: Oracles 🔮 How does a DeFi protocol know the real price of ETH, BTC or other assets? It needs an oracle. Simple flow: Real-world price → Oracle → Blockchain → DeFi protocol For example: ETH price changes → Oracle updates the price → Lending protocol checks it → Borrowing/liquidation decisions happen. Why are oracles important? • Lending & borrowing • Stablecoins • Derivatives • Liquidations • DeFi risk management Bad price data = bad DeFi decisions. That’s why oracle security is one of the most important parts of DeFi infrastructure. Question: If a DeFi protocol gets the wrong ETH price for just a few minutes, what could happen?
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