How Is the Amount of Required Collateral Determined? ▴ Learn

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.

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

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

How Does the Capital Cost of a PoS Attack Compare to the Operational Cost of a PoW Attack?

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