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How Does an Oracle Prevent Front-Running in Options Settlement?

Oracles use short-lived price validity or commitment schemes to prevent bots from profiting by seeing and executing trades before the options settlement transaction.
Greeks.Live06.11.25

How Does an Oracle Prevent Front-Running in Options Settlement?

Front-running occurs when a miner or bot sees a pending transaction (like an options exercise) and places their own transaction ahead of it to profit from the resulting price change. An oracle can mitigate this by delivering a price that is only valid for a specific, short time window or by using a commitment scheme where the price is revealed only after the transaction is confirmed, preventing manipulation based on pre-revealed data.

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