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Building Full Stack DeFi Applications
book

Building Full Stack DeFi Applications

by Samuel Zhou
March 2024
Intermediate to advanced
490 pages
12h 26m
English
Packt Publishing
Content preview from Building Full Stack DeFi Applications

13

Implementing a Price Oracle for Crypto Loans

In the previous chapter, you learned that the decentralized crypto loan smart contacts rely heavily on token prices and that the prices help maintain the balance between liquidity for collaterals and borrowed assets. Inaccurate price information may lead to the loss of assets, affecting liquidity and resulting in inadequate funds for borrowing and withdrawal. Even worse, the attackers can drain all the funds by manipulating the price utilized by the crypto loan system. Building a reliable and manipulation-resistant price oracle is essential for a crypto loan system.

A price oracle is a source of truth for token prices that can be accessed by smart contracts running on the blockchain. The price ...

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Publisher Resources

ISBN: 9781837634118