What Are the Risks of Relying on a Single Data Feed for an Options Smart Contract?
Relying on a single data feed for an options smart contract creates a critical single point of failure. This exposes the contract to manipulation, such as a 'flash loan' attack that temporarily spikes the price on a single exchange, or simple downtime/inaccuracy of the source.
If the single feed is compromised, the options contract will settle based on incorrect data, leading to unfair losses for one or both parties.