Data Feed

A data feed is a stream of information provided by an oracle to a smart contract, typically containing price data for assets. In decentralized finance, these feeds are essential for protocols like lending platforms, where they determine the value of collateral and trigger liquidations.

To prevent manipulation, modern protocols often use decentralized data feeds that aggregate information from multiple independent sources. This ensures that no single point of failure or malicious actor can distort the price.

Reliable data feeds are the foundation of accurate pricing and fair execution in derivative markets, making their integrity one of the most critical aspects of protocol architecture and system risk management.