How Can DAOs Use Decentralized Oracles Securely to Price Financial Derivatives?

To securely price derivatives, DAOs must use oracles that aggregate data from multiple independent, high-quality sources to avoid a single point of failure. Using a network of decentralized nodes, like Chainlink, ensures that no single node can manipulate the price data.

It is also crucial to implement checks and balances within the smart contract, such as circuit breakers that halt trading if the oracle reports an anomalous price change outside a reasonable range. This combination of data source decentralization and smart contract-level safeguards is key to secure oracle use.