What Is an 'Oracle Exploit' and How Does It Occur? ⎊ Path

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

An oracle exploit is a type of attack where a malicious actor manipulates the data feed provided by an oracle to trick a smart contract into executing a financially advantageous action for the attacker. This can occur by manipulating the spot price on a low-liquidity exchange used by a single-source oracle, or by exploiting a vulnerability in the oracle's aggregation logic to submit a false value.

The result is often the theft of funds from a DeFi protocol.

What Are the Risks of Relying on a Single Data Feed for an Options Smart Contract?

What Is an Oracle Attack and How Does It Combine with Reentrancy in Derivatives?

What Are Common Phishing Techniques Used to Target Hot Wallet Users?

How Does an Oracle Feed Real-World Data into a Smart Contract?

How Can an Oracle Be Manipulated to Execute a Profitable but Fraudulent Options Trade?

Can a Double-Spend Attack Be Used to Manipulate the Price of a Derivative?

What Is the Difference between an Oracle Exploit and General Market Manipulation in DeFi?

How Can an Attacker Profit from an Oracle Exploit without Directly Manipulating the Underlying Asset’s Market Price?

Glossar

Malicious Actor

Exploitation ⎊ Within cryptocurrency derivatives, options trading, and financial derivatives, exploitation represents the strategic leveraging of vulnerabilities ⎊ often systemic ⎊ to generate illicit gains.