technology hard MCQ

Which DeFi risk arises from price oracle manipulation that can trigger liquidations?

  1. Impermanent Loss
  2. Oracle Manipulation
  3. Smart Contract Risk
  4. All of these

Answer: Oracle Manipulation

Oracle manipulation feeds false prices to DeFi protocols, triggering incorrect liquidations or arbitrage. Critical vulnerability requiring decentralized, robust oracles.

Topic Digital Currencies: DeFi
Exam Relevance Banking, UPSC, SSC
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