How Does a Price Feed from an Oracle Differ from the Exchange’s Last Traded Price?

The exchange's last traded price is the most recent price at which a trade occurred on that specific exchange. An oracle price feed, especially for decentralized protocols, is often an aggregated index price derived from multiple exchanges.

The oracle price is designed to be a more robust and manipulation-resistant representation of the global market price, making it a safer reference for critical functions like liquidations and funding rate calculations.