GlossaryAdvanced
Oracle Manipulation
An attack that exploits or distorts a price feed a smart contract relies on.
Oracle manipulation is an attack that exploits or artificially distorts the price data a smart contract relies on (its oracle), tricking the contract into acting on an inaccurate price — for example, to borrow more than genuinely justified collateral would allow.
Protocols relying on a single, easily-moved price source (such as a thin on-chain liquidity pool) are especially vulnerable; using robust, well-established, manipulation-resistant oracle designs is a standard defense.
Examples
- A protocol relying on an easily-moved, thin-liquidity price source is more vulnerable to oracle manipulation.
- Well-established, manipulation-resistant oracle designs are a standard defense against this attack.