DeFiIntermediate
Oracle
A mechanism that supplies information a blockchain application cannot directly obtain for itself.
PLAIN-ENGLISH DEFINITION
In more detail
A lending contract can read its own balances, but needs help knowing an asset's price elsewhere. An oracle brings that information into the system. Useful questions are where the data comes from, how it is checked and how recent it is when the contract uses it.
IN THE WILD
How you might use it
"I haven't borrowed more, but my collateral ratio changed after the oracle updated the price of my ETH."
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