What Is a ‘Data Feed’ in the Context of Decentralized Finance (DeFi)?
A data feed is a continuous, reliable stream of external information, typically price data, that is supplied to a smart contract by an oracle. In DeFi, these feeds are critical for protocols to accurately calculate asset values, execute liquidations, and manage collateral ratios.
A robust data feed ensures the financial logic of a DeFi application operates on up-to-date and correct market information.