# A First Look into DeFi Oracles

arXiv: https://arxiv.org/abs/2005.04377 · HTML: https://mlsanity.com/paper/2005.04377/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 9 May 2020.

## Built on by (most cited first, 1 of 1)

- [Can Artificial Intelligence solve the blockchain oracle problem? Unpacking the Challenges and Possibilities](https://mlsanity.com/paper/2507.02125/) (2025)

## Abstract (arXiv)

Recently emerging Decentralized Finance (DeFi) takes the promise of cryptocurrencies a step further, leveraging their decentralized networks to transform traditional financial products into trustless and transparent protocols that run without intermediaries. However, these protocols often require critical external information, like currency or commodity exchange rates, and in this respect they rely on special oracle nodes. In this paper, we present the first study of DeFi oracles deployed in practice. First, we investigate designs of mainstream DeFi platforms that rely on data from oracles. We find that these designs, surprisingly, position oracles as trusted parties with no or low accountability. Then, we present results of large-scale measurements of deployed oracles. We find and report that prices reported by oracles regularly deviate from current exchange rates, oracles are not free from operational issues, and their reports include anomalies. Finally, we compare the oracle designs and propose potential improvements.