As an ordinary investor, I am often attracted by market trends. Recently, I heard that a certain lending protocol offers high returns, so I unhesitatingly put my hard-earned Bitcoin as collateral into it. However, unexpectedly, just a few days later, I encountered liquidation and got liquidated.

The most ridiculous thing is that this loss was not due to the market's violent fluctuations, but rather due to the delay in oracle data. In fact, the coin price did not drop significantly, but the contract system mistakenly determined that the price had reached the liquidation line, directly clearing my position. At that moment, I felt like a clown being mocked by a cold, emotionless program.

After deepening my understanding, I realized that most DeFi protocols rely on third-party oracles. This dependency creates a lengthy data transmission chain: from the exchange to the intermediary, then to the oracle, and finally to the protocol itself. The longer this chain is, the greater the likelihood of errors. Sometimes, just a few seconds of data delay is enough to trigger early liquidation; at other times, the discrepancies between different data sources lead to inconsistencies; worse still, hackers may exploit system vulnerabilities to manipulate data, directly harming user interests.

This is the most helpless part for us small investors: clearly, we didn't do anything wrong, yet we became the final "bag holders".

However, when I came into contact with Pyth Network, I found a more reliable solution. The advantages of Pyth are: it uses first-party data sources, obtaining data directly from exchanges and market makers, avoiding intermediaries; it improves data accuracy by aggregating submissions from multiple institutions in a decentralized manner; it has extremely low latency, updating almost in real time, effectively preventing "false trigger" liquidations; finally, all its operations are transparent and traceable on-chain, greatly enhancing user trust.

This experience made me deeply realize that when participating in DeFi projects, it is not only important to focus on the yield but also to understand the technological infrastructure behind the projects. Choosing reliable oracle services, such as Pyth Network, can provide better protection for us small investors and reduce unnecessary losses. At the same time, this also highlights the importance of infrastructure in the DeFi ecosystem. Only by continuously improving these key components can we truly achieve the healthy development of decentralized finance.