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What Are the Risks Associated with a Single, Centralized Oracle Provider?

It creates a single point of failure, risking price manipulation or system failure if the centralized data source is compromised.
Greeks.Live16.11.25

What Are the Risks Associated with a Single, Centralized Oracle Provider?

A single, centralized oracle provider introduces a single point of failure and a high risk of manipulation. If the provider's server is compromised or maliciously provides incorrect price data, the smart contract will execute based on false information.

This can lead to incorrect liquidations, unfair settlements, or massive financial loss for users. This reliance undermines the core tenet of decentralization and introduces a trust requirement into a trustless system.

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