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Why Might a DeFi Protocol Choose a Centralized Oracle despite the Security Risks?

Centralized oracles offer superior speed, lower latency, and reduced gas costs, favoring high-frequency needs.
Greeks.Live06.11.25

Why Might a DeFi Protocol Choose a Centralized Oracle despite the Security Risks?

A centralized oracle offers much faster data updates, lower latency, and significantly reduced transaction costs compared to a decentralized network. For high-frequency trading or protocols requiring very fast price updates, the speed and low cost can outweigh the security risk.

Additionally, a centralized oracle is simpler to implement and maintain, reducing initial development complexity.

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