# How Can an Oracle Be Manipulated in a Price Feed Attack? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

---

## How Can an Oracle Be Manipulated in a Price Feed Attack?

An oracle can be manipulated by feeding it false price data. This often occurs when the oracle relies on a single, easily influenced data source, such as a low-liquidity decentralized exchange (DEX).

An attacker can execute a flash loan to temporarily swamp the DEX's liquidity, drastically altering the token price for a brief period. The oracle records this incorrect price, which is then used by a DeFi protocol to execute a malicious action, like under-collateralized borrowing or liquidation.

- [How Can Smart Contract Auditors Identify the Potential for a Flash Loan to Be Used for Oracle Manipulation?](https://learn.greeks.live/path/how-can-smart-contract-auditors-identify-the-potential-for-a-flash-loan-to-be-used-for-oracle-manipulation/)

- [How Can a Flash Loan Attack Exploit a Vulnerable Oracle Used by an Options Protocol?](https://learn.greeks.live/path/how-can-a-flash-loan-attack-exploit-a-vulnerable-oracle-used-by-an-options-protocol/)

- [What Is a “Flash Loan” and How Does It Relate to Market Manipulation Risks on DEXs?](https://learn.greeks.live/path/what-is-a-flash-loan-and-how-does-it-relate-to-market-manipulation-risks-on-dexs/)

- [What Is the Risk of a Single-Source Price Feed Oracle?](https://learn.greeks.live/path/what-is-the-risk-of-a-single-source-price-feed-oracle/)

- [Can You Describe a Real-World Example of a Major Flash Loan Attack on a DEX?](https://learn.greeks.live/path/can-you-describe-a-real-world-example-of-a-major-flash-loan-attack-on-a-dex/)

- [How Do Decentralized Oracle Networks (DONs) Mitigate Price Feed Attacks?](https://learn.greeks.live/path/how-do-decentralized-oracle-networks-dons-mitigate-price-feed-attacks/)

- [What Is a Flash Loan and How Does It Enable a Price Feed Attack?](https://learn.greeks.live/path/what-is-a-flash-loan-and-how-does-it-enable-a-price-feed-attack/)

- [What Is the Risk of a “Flash Loan Attack” on a DEX Liquidity Pool?](https://learn.greeks.live/path/what-is-the-risk-of-a-flash-loan-attack-on-a-dex-liquidity-pool/)

## Glossar

### [Price Feed](https://learn.greeks.live/area/price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Feed ⎊ A price feed is a continuous stream of real-time pricing data from various sources used to determine the fair value of an asset.

### [Decentralized Oracle Networks](https://learn.greeks.live/area/decentralized-oracle-networks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Architecture ⎊ Decentralized Oracle Networks (DONs) represent a robust infrastructure designed to provide reliable external data to smart contracts without relying on a single, centralized entity.

### [Decentralized Exchanges](https://learn.greeks.live/area/decentralized-exchanges/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Access ⎊ These platforms offer permissionless entry to cryptocurrency and tokenized asset markets, democratizing capital deployment into novel financial structures.

## Discover More

### [How Does a "Weighted Average" Improve the Quality of a Price Feed?](https://learn.greeks.live/path/how-does-a-weighted-average-improve-the-quality-of-a-price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a "Weighted Average" Improve the Quality of a Price Feed?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Optics-on-a-Reflective-Surface-Modeling-Algorithmic-Hedging-Strategies-in-Digital-Asset-Markets.webp)

Assigns higher significance to data from high-volume, liquid sources, making the aggregated price more reflective of the true market.

### [How Does a Malicious Governance Proposal Differ from an Oracle Attack?](https://learn.greeks.live/path/how-does-a-malicious-governance-proposal-differ-from-an-oracle-attack/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Malicious Governance Proposal Differ from an Oracle Attack?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-View-of-a-DeFi-Protocol-Governance-Token-Mechanism-Interface-Featuring-Volatility-Swaption-Strike-Adjustment.webp)

Oracle attack manipulates data input; malicious governance proposal uses the voting mechanism to intentionally change the contract's logic or parameters.

### [What Is the Concept of "Liveness" in the Context of an Oracle's Price Feed?](https://learn.greeks.live/path/what-is-the-concept-of-liveness-in-the-context-of-an-oracles-price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Concept of "Liveness" in the Context of an Oracle's Price Feed?](https://learn.greeks.live/wp-content/uploads/2025/10/Geometric-Substrate-Convergence-Centering-Volatile-Cryptographic-Asset-Derivative-Sphere.webp)

The ability of the Oracle to continuously and promptly provide price updates, especially during congestion or high volatility.

### [Can TWAP Be Manipulated by Executing a Large Number of Small Trades?](https://learn.greeks.live/path/can-twap-be-manipulated-by-executing-a-large-number-of-small-trades/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can TWAP Be Manipulated by Executing a Large Number of Small Trades?](https://learn.greeks.live/wp-content/uploads/2025/10/Beige-Monolithic-Haptic-Interface-Device-Representing-Decentralized-Autonomous-Organization-Governance-Mechanisms.webp)

Extremely difficult and costly, as the artificial price must be sustained over the entire time window, making it economically inefficient.

### [In the Context of Derivatives, How Does a Manipulated Oracle Price Affect the Margin and Liquidation Engine?](https://learn.greeks.live/path/in-the-context-of-derivatives-how-does-a-manipulated-oracle-price-affect-the-margin-and-liquidation-engine/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![In the Context of Derivatives, How Does a Manipulated Oracle Price Affect the Margin and Liquidation Engine?](https://learn.greeks.live/wp-content/uploads/2025/10/Xray-Visualization-of-Bifurcated-Digital-Asset-Settlement-Mechanisms-Leveraging-NonFungible-Token-Call-Options.webp)

It can falsely inflate collateral value to allow over-leveraging or falsely deflate it to trigger unfair, profitable liquidations.

### [How Can Oracle Price Feeds Be Exploited in a Derivatives Front-Running Attack?](https://learn.greeks.live/path/how-can-oracle-price-feeds-be-exploited-in-a-derivatives-front-running-attack/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can Oracle Price Feeds Be Exploited in a Derivatives Front-Running Attack?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Perspective-on-Precision-Actuator-Mechanics-Analogous-to-Algorithmic-Option-Price-Discovery-Mechanisms.webp)

Front-runners can exploit the brief window when a new oracle price feed is pending but not yet finalized to place trades at an advantageous price.

### [How Does Block Time Affect the Perceived Latency of an Oracle Feed?](https://learn.greeks.live/path/how-does-block-time-affect-the-perceived-latency-of-an-oracle-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Block Time Affect the Perceived Latency of an Oracle Feed?](https://learn.greeks.live/wp-content/uploads/2025/10/Visualizing-Delta-Hedging-Mechanics-Utilizing-Light-Transmission-Through-Opaque-Housing-Structure.webp)

Block time sets the minimum latency for a price update, meaning shorter block times allow for faster, more precise liquidation triggers.

### [Can a Flash Loan Be Used to Attack an Oracle That Relies on a TWAP?](https://learn.greeks.live/path/can-a-flash-loan-be-used-to-attack-an-oracle-that-relies-on-a-twap/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Flash Loan Be Used to Attack an Oracle That Relies on a TWAP?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Instrument-Modeling-for-Decentralized-Finance-Volatility-Surface-Calibration-Analysis.webp)

No, the momentary price spike from the flash loan is too brief to significantly affect the price averaged over the TWAP window.

### [What Is a "Preimage Attack" and How Does It Differ from a Collision Attack?](https://learn.greeks.live/path/what-is-a-preimage-attack-and-how-does-it-differ-from-a-collision-attack/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a "Preimage Attack" and How Does It Differ from a Collision Attack?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Machined-Interface-Component-Geometry-Simulating-Decentralized-Exchange-Liquidity-Provision-Mechanisms.webp)

Preimage attack finds the input for a given hash. Collision attack finds any two inputs that produce the same hash.

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