OEV: THE BIGGEST PROBLEM IN DEFI ORACLES

Summary from the TLDR Crypto newsletter

The use of DeFi Oracles, data providers for decentralized platforms, has been criticized due to high latency periods leading to capital exploitation. Node operators have a window to manipulate price feeds, creating a problem known as Oracle Extractable Value (OEV). Companies like AAVE have experienced ongoing attacks because of OEV. Solutions such as API3's implementation of fair system OEV extraction through order flow auctions offer hope. Decentralized oracles like UMA and API3 are also exploring similar strategies to preserve data integrity.