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, see Kaavon's "Liquidity Pool" glossary definition) 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.
Learn more
How to Verify a Smart Contract Before Interacting
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Decentralized Oracle Network
Read the Decentralized Oracle Network glossary definition
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Flash Loan Attack
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