GK Question

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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