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How Do Oracles Ensure Accurate Collateral Valuation in a DeFi Protocol?

Oracles feed aggregated, real-time asset prices to smart contracts, ensuring fair and accurate collateral valuation for liquidation.
Greeks.Live22.11.25

How Do Oracles Ensure Accurate Collateral Valuation in a DeFi Protocol?

Oracles are decentralized services that feed real-world data, such as asset prices, into smart contracts. They are crucial for DeFi protocols to accurately determine the value of collateral and debt.

By using multiple, aggregated data sources, oracles minimize the risk of a single point of failure or price manipulation, ensuring fair liquidation.

How Do Oracles Enable Smart Contracts to Interact with Real-World Data?
What Is a “Time-Weighted Average Price” (TWAP) Oracle and Its Benefit?
Explain the Role of an Oracle in Decentralized Finance (DeFi) and Its Connection to Accurate Pricing on a DEX
How Do ‘Oracles’ Contribute to the Functionality and Security of a DEX?

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