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

Single point of failure, susceptibility to manipulation, and risk of incorrect liquidations if the oracle is compromised or fails.
Greeks.Live23.11.25

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

A single, centralized oracle presents a significant single point of failure and is highly susceptible to manipulation. If the centralized source is compromised or fails, the smart contracts relying on its data could execute liquidations or settlements based on incorrect prices.

This can lead to unfair losses for traders and poses a major security risk for decentralized finance (DeFi) protocols.

What Are the Risks Associated with a “Single Point of Failure” in a Decentralized Oracle System?
Why Is a Single, Centralized Oracle Considered a Security Risk for a DeFi Derivative?
What Are the Risks Associated with a Single, Centralized Oracle Provider?
How Can Oracle Failure Lead to Cascading Liquidations in a Derivatives Exchange?

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