How Can a Smart Contract Detect If an Oracle Feed Is Stale?
A smart contract can detect a stale feed by checking the timestamp of the last price update provided by the oracle. The contract is programmed with a maximum acceptable latency.
If the time elapsed since the last update exceeds this pre-set threshold, the contract will refuse to execute the transaction, protecting itself from acting on outdated and potentially manipulated data.
Glossar
Stale Price
Price ⎊ The term "stale price" in cryptocurrency derivatives, options trading, and related financial instruments denotes a market quotation that is considered outdated or no longer reflective of current market conditions.
Oracle Feed
Function ⎊ An oracle feed serves as the external data source that provides real-world information to smart contracts, enabling them to execute derivatives contracts based on current market conditions.
Stale Data
Latency ⎊ Stale data within cryptocurrency, options, and derivatives markets represents a temporal disconnect between information availability and its reflection in pricing mechanisms, creating opportunities for arbitrage or increased risk exposure.