Aggregated Data Sources

Aggregated data sources involve collecting and combining information from multiple independent exchanges and data providers to create a comprehensive price index. By aggregating data, protocols reduce their reliance on any single source, which mitigates the impact of localized price spikes or exchange-specific glitches.

This approach provides a more stable and accurate representation of an asset's global market value. In the context of lending, using aggregated data is essential for preventing price manipulation attacks that target specific liquidity pools.

It is a core feature of high-quality oracle services, which often provide multiple aggregated feeds to suit different use cases. The quality of the aggregation method directly affects the precision of the lending protocol's risk engine.