Smart contracts are deterministic. They only execute what they can verify on-chain. If a lending protocol needs ETH price data or a stablecoin needs collateral valuation, that data must come from somewhere trustworthy. That bridge is called an oracle.
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Smart contracts are deterministic. They only execute what they can verify on-chain. If a lending protocol needs ETH price data or a stablecoin needs collateral valuation, that data must come from somewhere trustworthy. That bridge is called an oracle.