By the end, you’ll be able to…
- Distinguish a front-end price from a contract’s oracle value.
- Identify scaling and dependency errors in a price feed.
Three questions to carry into this lesson.
A contract needs a defined measurement
A lending protocol cannot simply look at the world. It consumes a value from its configured oracle. That value affects collateralization and liquidation eligibility. Morpho documentation explains that the on-chain oracle price can differ from the display price used by an interface. A reassuring portfolio chart therefore does not establish a position’s on-chain condition.
Units are part of the security boundary
A price function must be interpreted with the correct collateral and loan token units and normalization. Misreading decimals can produce a plausible-looking but wildly incorrect ratio. Also inspect whether the feed values a token directly or assumes a relationship to another asset. A wrapped asset’s market price and the price of underlying BTC can diverge when redemption or confidence changes.
Trace dependencies and failure behavior
For a fictional oracle review, identify the data sources, update behavior, administrative powers and response to stale or unavailable information. The exact contract implementation determines which protections exist; do not import assumptions from a different market. Document the observation time and unresolved questions. This course supplies no live risk alerts. An independent dashboard that stops updating must show stale status, rather than repeating its last healthy value as if nothing changed.
Practice on paper
A dashboard values collateral at 100 units, while the market’s oracle values it at 80. Which value governs the protocol’s collateral calculation?
I’ve tried it — show the worked answer
The configured on-chain oracle value, interpreted under the contract’s rules. The dashboard may be displaying another price source or timestamp. Investigate the difference rather than treating the higher number as available borrowing capacity.
Want to explore with buttons and instant feedback? Try the practice lab ↗
Make a choice. Discover why.
Choose an answer and check the explanation. You can retry as often as you like. These are practice questions, not a test of mastery; answers are not saved or sent.
One idea to take with you
A price is a method, a unit and a timestamp—not just a number.
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