A new report from Binance Research has revealed that oracle-related exploits have caused nearly a billion dollars worth of losses over the past three years. Oracles are used to connect blockchains to external data, allowing smart contracts to execute tasks based on real-world events or conditions. This is especially important for decentralized finance (DeFi) protocols, which use oracles to fetch the market price of assets.However, Binance Research says that real-world data across different sources vary, making systems relying on oracles vulnerable to manipulation. Malicious actors can exploit this weakness to skew price feeds and swiftly drain a platform’s funds. Prominent examples of such exploits include the Mango Markets breach and the attack on EraLend in July this year.The report estimates that $892 million have been exploited due to oracle-related manipulations since 2020. Actors drive up the prices of low-liquidity tokens on targeted protocols before swapping their artificially inflated tokens to other tokens, or using them as collateral to take up loans in lending markets. The total value hacked in oracle-related exploits jumped from $65 million in 2020 to $399.1 million in 2021, peaking at $403.2 million in 2022 before dropping to $25.4 million in 2023.Binance Research attributes the decline in oracle-related exploits this year to a combination of increased focus on security and a broad decline in DeFi TVL (total value locked).

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Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	8
People	None
Companies	DeFi, Mango Markets, Binance, EraLend, Binance Research
Currencies	None
Securities	None