What Is an Oracle Attack and How Can It De-Peg a Stablecoin? ⎊ Path

What Is an Oracle Attack and How Can It De-Peg a Stablecoin?

An oracle attack involves manipulating the price data feed that a stablecoin protocol uses to value its collateral. If an attacker can trick the oracle into reporting an artificially high price for the collateral, they can borrow a large amount of the stablecoin with insufficient collateral, essentially draining the protocol's reserves.

When the true price is revealed, the protocol is left under-collateralized, leading to a massive de-peg.

Can an Exchange Artificially Inflate Its Volume to Gain More Weight?

How Can Flash Loans Be Used in Conjunction with an Oracle Attack?

How Do ‘Wash Trades’ Distort the True Liquidity Picture in Level 2 Crypto Data?

What Is an ‘Oracle Exploit’ and How Does It Occur?

What Is the Significance of the ‘Peg’ in a Stablecoin and How Do Reserves Maintain It?

How Do Flash Loan Exploits Allow Attackers to Manipulate Prices on a Decentralized Exchange?

What Is the Concept of “Wash Trading” and How Does It Affect NFT Valuation?

What Is a ‘Bad Debt’ Scenario in a Decentralized Futures Platform and How Does an Oracle Attack Cause It?

Glossar

Oracle Attack

Exploitation ⎊ An Oracle Attack, within cryptocurrency and derivative markets, represents a manipulation of data feeds ⎊ oracles ⎊ that provide external information to smart contracts.