How Does the Selection of Data Sources Impact the Final Aggregated Price?

The selection of data sources is critical because it determines the quality and representativeness of the final aggregated price. If an oracle network only pulls data from low-liquidity exchanges, the final price will be easily manipulated and not reflect the global market.

A robust oracle selects data from a diverse set of high-volume, reputable exchanges and data providers to ensure the aggregated price is accurate, deep, and resistant to localized manipulation.