Analyzing the Viability of Oracle-Free Lending

Due to the digital and isolated nature of blockchains, they inherently lack the ability to interact with or obtain information from the real world. Digital oracles have emerged to bridge this informational gap.

In the case of lending protocols, price oracles play a vital role in providing external data feeds, as they help maintain healthy collateralization ratios, trigger liquidations and agree on the value of collateral and its borrowed amounts.