What Is the Role of a Decentralized Oracle Network in Mitigating Manipulation?

A decentralized oracle network (DON) mitigates manipulation by aggregating price data from numerous independent, external sources, rather than relying on a single source. These sources are often reputable centralized exchanges and data aggregators.

The DON uses a consensus mechanism to validate and average the reported data, making it computationally and financially infeasible for an attacker to manipulate all sources simultaneously. This multi-source, consensus-driven approach ensures a more robust and accurate price feed.