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How Does Data Aggregation Help Prevent “Flash Loan” Attacks on DeFi Protocols?

It dilutes a single-exchange price manipulation by averaging the price across many high-liquidity sources, rendering the attack ineffective.
Greeks.Live05.11.25

How Does Data Aggregation Help Prevent “Flash Loan” Attacks on DeFi Protocols?

Flash loan attacks often target DeFi protocols by manipulating the price on a single, low-liquidity exchange. Data aggregation prevents this by averaging the price across many high-liquidity exchanges.

A price manipulation on one small exchange will be diluted by the accurate prices from the numerous other sources, rendering the flash loan attack ineffective against the protocol's oracle price.

What Is “Data Aggregation” and Why Is It Important for Oracle Security?
How Does the Issuance Rate of a Token Impact Its Long-Term Value?
What Is a Flash Loan and How Can It Be Used to Amplify a Reentrancy Attack?
How Does a Time-Weighted Average Price (TWAP) Oracle Mitigate Flash Loan Attacks?

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