Chainlink oracle ‘malfunction’ sparks $500k in DeFi liquidations, reignites oracle debate - Coin Surges

Chainlink Price Oracle Glitch Triggers $500K in DeFi Liquidations Amid Market Drop - Blockonomi

TLDR:  Chainlink oracle misreported deUSD as $1.028, triggering $500K in forced liquidations. The error stemmed from a VWAP anomaly on a thinly traded Curve pool. Critics say Chainlink’s pricing model failed due to low liquidity and delayed data. LINK price dropped over 7% amid the glitch and wider crypto market downturn. A Chainlink oracle misreported the value of the deUSD stablecoin on Avalanche as $1.028, triggering over $500,000 in liquida…

Chainlink oracle ‘malfunction’ sparks $500k in DeFi liquidations, reignites oracle debate - Coin Surges

A Chainlink price feed’s alleged malfunction led to more than $500,000 in liquidations on May 29, sparking fresh debate over the reliability of oracles in DeFi. According to reports, Chainlink’s price oracle for the deUSD stablecoin inaccurately reported its value at $1.03. The incorrect data triggered liquidations for users holding deUSD-denominated debt on Avalanche’s Euler Finance lending protocol. The impact was severe, especially for those …