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What Is the Risk of Using a Single Centralized Oracle?

A single centralized oracle creates a single point of failure, risking data manipulation, incorrect settlement, and potential loss of collateral.
Greeks.Live06.11.25

What Is the Risk of Using a Single Centralized Oracle?

The primary risk is a single point of failure and potential manipulation. If a smart contract relies on one centralized oracle, that oracle becomes a vulnerable target for attack or coercion.

A compromised oracle could intentionally feed false data to the contract, leading to incorrect settlement, malicious liquidations, or theft of collateral in a derivatives protocol.

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Why Is a Single, Centralized Oracle a Potential Point of Failure?

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