Give an Example of a DeFi Function Reliant on an Oracle ⎊ Path

Give an Example of a DeFi Function Reliant on an Oracle.

A prime example is a decentralized lending protocol like Aave or Compound. The smart contract needs an accurate, real-time price feed for the collateral asset to determine the borrower's collateralization ratio.

If the asset's price drops too low, the oracle triggers a liquidation event based on the data.

How Do Smart Contracts Trigger Liquidations to Maintain a Stablecoin’s Peg?

What Are Keeper Bots and What Role Do They Play in Decentralized Liquidations?

Give an Example of a Common Physically-Settled Derivative in Traditional Finance

Can an Oracle Be Used to Trigger a Margin Call in a Decentralized Lending Smart Contract?

How Does ‘Data Manipulation’ Specifically Affect a DeFi Lending Protocol?

Give an Example of a State Variable in a Smart Contract Used for Collateralized Lending

What Is an Oracle’s Role in a Decentralized Margin Trading Protocol?

Define the Term ‘Exotic Option’ and Give One Example

Glossar

Decentralized Lending

Service ⎊ Decentralized Lending is the practice of borrowing and lending assets directly through automated, non-custodial smart contracts, eliminating traditional financial intermediaries and relying on algorithmic collateralization for security.