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How Does ‘Data Manipulation’ Specifically Affect a DeFi Lending Protocol?

Can be used to trigger fraudulent liquidations or allow malicious actors to extract excess value from the protocol.
Greeks.Live06.11.25

How Does ‘Data Manipulation’ Specifically Affect a DeFi Lending Protocol?

In a DeFi lending protocol, data manipulation of a price Oracle can be exploited to trigger fraudulent liquidations or to under-collateralize a loan. A malicious actor could temporarily suppress the price of a borrower's collateral asset, forcing a premature liquidation.

Conversely, they could inflate the price of a borrowed asset to extract more value than they are due.

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