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What Is the Main Drawback of Using a Simple Spot Price for a Price Feed?

Spot price is highly vulnerable to momentary manipulation, making it unreliable for critical smart contract operations like liquidations.
Greeks.Live20.11.25

What Is the Main Drawback of Using a Simple Spot Price for a Price Feed?

The main drawback is its extreme vulnerability to momentary manipulation, especially via flash loan attacks. A simple spot price is the price at the exact moment the contract queries it.

An attacker can execute a trade to momentarily spike or drop this price, and the oracle will report the manipulated value. This makes the spot price an unreliable trigger for high-value operations like liquidations or derivative settlements.

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