Oracle Risk

As Echelon's products rely heavily on price feeds from partnered oracles, inaccuracies in price feeds may result in unexpected liquidations for borrowers or lenders. As such, Echelon attempts to follow an Asset Listing process and continued monitoring of available collateral assets and their oracle price feeds. In the event of an oracle exploit determined by pre-established conditions, Echelon will switch to a backup oracle as explained here.

Note that given the variety of oracles used and assets listed, it's up to users depositing in each market to note which oracle is being used and properly assess their own risk tolerance. For example, some oracles depend on pool prices which are subject to quick change in volatile market conditions, while others are custom based on asset exchange rates, and others rely on third parties like Pyth and Switchboard.