# Pricing Oracles ## Oracles in OpFi Blockchain oracles are entities that connect blockchains to external systems, thereby enabling smart contracts to execute based upon inputs and outputs from the real world, between blockchains or other smart contracts. As such, Oracles are extremely important to OpFi projects because they allow contract logic to be executed based on external data. For borrowing and lending products, oracles are specifically needed for data concerning: pricing, interest rates, determining the market value of assets/collateral, health factors, etc. ## Oracles as vectors for malicious actors / exploits A vulnerability arises when protocols relying on oracles automatically execute actions even though the oracle-provided data feed is incorrect. An oracle with deprecated or even malicious contents can have disastrous effects on all processes connected to the data feed. In practice, manipulated data feeds can cause significant damage, from unwarranted liquidations to malicious arbitrage trades. A classic vulnerability comes from the world of on-chain price oracles: Trusting the spot price of a decentralized exchange. In OpFi, we have seen malicious actors use oracles as an attack vector to manipulate contract logic resulting in hacks and exploits. Oracle-related exploits are some of the most common types of attacks in OpFi. They have resulted in tens of millions of dollars being stolen by bad actors, which negatively impacts the greater OpFi ecosystem, projects and of - course end users. You just need to head over to [Rekt leaderboard](https://rekt.news/leaderboard/) to see the growing number of exploits caused by Oracles. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://3six9innovatio.gitbook.io/documentation/3six9-products/the-3xcalibur-ecosystem/solving-problems-in-opfi/pricing-oracles.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.