How Many times did they use Oracle Manipulation in the Bitcoin Market | Digital Marketing + Finances

How Many times did they use Oracle Manipulation in the Bitcoin Market:
Oracle Manipulation is a malicious technique used in the cryptocurrency and decentralized finance (DeFi) market to exploit vulnerabilities in oracles, which are systems that provide data external to smart contracts, such as asset prices, exchange rates, or real-world information.
These oracles are essential to the operation of many DeFi platforms, as smart contracts rely on accurate data to correctly perform their functions such as lending, swaps, and settlements.
How oracles work - Oracles connect smart contracts to external information, as contracts alone cannot directly access data outside of the blockchain. There are different types of oracles:
Centralized Oracles: A single entity provides data.
Decentralized Oracles: Use multiple data sources to mitigate the risk of manipulation, such as Chainlink and Band Protocol.
Push vs Pull Oracles: Some oracles “push” data to the blockchain (push), while others respond to specific smart contract queries (pull).
What is Oracle Manipulation: Oracle manipulation occurs when a malicious actor interferes with the data provided by the oracle to modify prices or information that affects the execution of a smart contract. This can be done, for example, by artificially inflating the price of an asset on a decentralized exchange (DEX) that uses an oracle to update prices in real time.
Main Oracle Manipulation tactics:
Sybil Attack: The attacker creates multiple false identities or data sources to influence the oracle, especially in centralized oracles with little decentralization.
DEX Price Manipulation: If a smart contract is using prices from a specific DEX, an attacker can make large transactions to temporarily change the price of an asset, tricking the oracle into reporting an inflated or deflated price.
Trading Volume Manipulation: Changing the trading volume of an asset can influence the perception of its liquidity and price, leading the oracle to provide incorrect data.
Flash Loan Exploits: One of the most common attacks. The attacker takes a flash loan, manipulates the price of an asset through a momentary transaction on a DEX, and uses the oracle that reflects this temporary price to profit, liquidate others' positions, or execute arbitrage operations before the price returns to normal.
Market impacts:
Loss of funds: Oracle manipulation attacks can lead to massive loss of funds from both investors and DeFi protocols.
Smart contract failure: Contracts that rely on corrupted data can execute incorrectly, resulting in losses.
Malicious arbitrage: Attackers can gain significant arbitrage by exploiting discrepancies between an asset's true price and the price reported by the oracle.
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