How Is the Amount of Required Collateral Determined? ⎊ Path

How Is the Amount of Required Collateral Determined?

The amount of required collateral (stake) is determined by a risk assessment model that aims to make the economic cost of a successful attack prohibitively high. It must be significantly greater than the potential profit an attacker could gain from manipulating the data feed and exploiting the dependent smart contracts.

This amount is often dynamically adjusted based on the total value secured by the oracle.

How Does a High Fork Cost Relate to the 51% Attack Threshold?

What Is the Relationship between Oracle Token Price and Its Economic Security?

What Are the Key Differences between Proof-of-Work and Proof-of-Stake Consensus Mechanisms regarding Network Security?

What Is the ‘Cost to Attack’ Metric and Why Is It Crucial for PoW Security?

How Does the Cost of a 51% Attack in PoS Scale Compared to the Cost in PoW?

What Is the Minimum Stake Requirement and How Does It Relate to the Cost of an Attack?

Compare the Capital Cost of a PoS Attack to the Energy Cost of a PoW Attack

What Is the Concept of “Economic Security” in the Context of Blockchain?