How Does a Centralized Exchange (CEX) Price Feed Differ in Risk from a DEX Feed?
A CEX price feed is determined by its internal order book and is generally more resistant to single-transaction manipulation than a low-liquidity DEX. However, a CEX feed is subject to counterparty risk, regulatory risk, and potential manipulation by the exchange itself.
A DEX price feed, while more susceptible to flash loan attacks, is transparent and decentralized, but only as robust as its pool liquidity.
Glossar
Price Feed
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.
Centralized Exchange
Intermediary ⎊ This refers to a regulated or semi-regulated entity that acts as a trusted third party, facilitating the custody of client assets and the matching of buy and sell orders for cryptocurrency and associated derivatives on a centralized order book.
CEX Price Feed
Aggregation ⎊ A CEX Price Feed represents a consolidated market data stream originating from multiple centralized cryptocurrency exchanges, providing a unified view of asset pricing.