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Quantitative Finance · शब्दावली

Oracle manipulation क्या है?

Definition 23.8 Markets III: Commodities, Energy and Crypto · अध्याय 23 — DeFi Credit and Leverage

Oracle manipulation is moving the price that an oracle reports to a smart contract, usually by trading in the thin markets it reads, in order to borrow against inflated collateral, avoid a liquidation or trigger one.

The oracle pump of : 5 million tokens at USD 1 as collateral (loan-to-value 60%), a pool of USD 50 million, and a source market holding USD 2 million; tokens bought in the pump are assumed worthless afterwards. The gain turns positive at a pump of less than two times, peaks when the pool is empty, and then falls as further pumping only costs. Illustrative parameters. Data: the chapter’s tutorial.
Figure 23.4. The oracle pump of Proposition 23.9: 5 million tokens at USD 1 as collateral (loan-to-value 60%), a pool of USD 50 million, and a source market holding USD 2 million; tokens bought in the pump are assumed worthless afterwards. The gain turns positive at a pump of less than two times, peaks when the pool is empty, and then falls as further pumping only costs. Illustrative parameters. Data: the chapter’s tutorial.
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