What is Price oracle?
The data feed a contract reads to learn an asset's price from outside the chain.
Contracts cannot see exchanges, so they read an oracle. Aggregators like Chainlink combine many venues into one feed with fallbacks.
Manipulating an oracle — usually by moving a thin pool the feed reads from — has been a recurring exploit. A protocol's collateral assumptions are only as good as its feed.
Related terms
The chance that a contract's code or admin keys take your funds, regardless of price.
- LiquidityTrading
How easily you can buy or sell without moving the price: depth, spread and turnover together.