How Can an Oracle Be Leveraged to Improve the Security of Governance Proposals?

An oracle is a third-party service that provides smart contracts with external, real-world data. In governance, an oracle can be used to feed objective, verifiable data into a proposal's execution logic.

For example, a proposal to adjust a lending protocol's interest rate might depend on an oracle-fed metric like the current market volatility or a specific price feed. This ensures that the proposal's outcome is based on accurate, tamper-proof external conditions, preventing subjective or manipulated data from triggering a malicious action.