Today I want to discuss a often-overlooked issue in DeFi—the cost of oracles.



Many people complain when using decentralized applications, saying "Why is it so laggy?""Why are the prices so different?""I was suddenly liquidated," and some features even disappear unexpectedly. However, the real underlying reason is rarely questioned. In fact, all of this points to the same problem: the hidden accumulation of oracle costs.

This cost is like a pebble in a sandpile. Initially, it’s barely noticeable, but as the ecosystem expands, data volume increases, and product complexity grows, it begins to surface and eventually becomes an insurmountable bottleneck.

**In the early stages, everything was manageable.** With small-scale applications, any oracle sufficed—low fees, fast updates, and a smooth user experience. But once cross-chain interactions increase, asset types diversify, and functionalities become more complex, the situation changes dramatically. Each data update incurs a cost, and it’s a continuous expense. Project teams are left with only a few options—either reduce update frequency (using outdated prices), support fewer tokens (limiting functionality), or introduce unreliable data sources (posing risks).

These seemingly cost-saving measures actually erode the system’s security. During volatile market conditions, vulnerabilities are exposed.

Some have already recognized the severity of this issue and are starting to focus on oracle efficiency itself. Instead of allowing costs to spiral out of control, designing more efficient oracle mechanisms could become the key to next-generation DeFi product competition.
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SerumSquirtervip
· 9h ago
Well, ultimately it's still cost pressure that has stalled DeFi, someone should have pointed this out long ago. I've long noticed the issue of oracle fee accumulation; every interaction secretly costs more, and project teams are forced to resort to crooked tricks. When the update frequency drops, price data becomes outdated, who bears this risk? The next round of DeFi competition will really be about this—who can reduce oracle costs will win. Projects still using old mechanisms will eventually get stuck.
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GasFeeLadyvip
· 9h ago
honestly this is just gas costs with extra steps... watched this play out on mainnet a hundred times already. every protocol that scales hits the same wall—oracle updates become the silent killer nobody talks about until liquidations start raining. seen projects literally abandon altcoins support just to keep their gwei spending sane lol
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OffchainOraclevip
· 10h ago
Really, it was only at the moment of the liquidation that I realized it was the oracle's fault... You get what you pay for. --- That's why small coins are often unmaintained; the costs are just too high. --- So it makes sense that Chainlink is so expensive, but it's also because of the high cost that everyone is forced to find ways to optimize. --- If I had known there were so many pitfalls in DeFi, I might as well buy spot and just relax. --- The question is, who will develop an efficient oracle solution? Right now, this area is truly a blank space. --- I see, those functions that suddenly go offline are not technical issues at all; it's purely because the costs can't be sustained. --- Price delays lead to liquidations, and only then do people realize... It's so frustrating.
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StakeTillRetirevip
· 10h ago
The main point is correct. Every time I get liquidated, I wonder if it's due to price slippage or something else. Turns out, it's this damn thing causing trouble behind the scenes.
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OldLeekConfessionvip
· 10h ago
Wow, this is the real pain point of DeFi. I thought it was just my internet connection before.
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CryptoHistoryClassvip
· 10h ago
ngl this is literally the $LUNA playbook redux... everyone ignores infrastructure costs until suddenly they can't. statistically speaking, we're hitting the exact same capitulation phase as 2017-18 when projects got too ambitious and the oracles became the silent killer. history doesn't repeat but it sure rhymes, and these margin calls are gonna be *chef's kiss*
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