Trade
Basic
Futures
Futures
Hundreds of contracts settled in USDT or BTC
Options
HOT
Trade European-style vanilla options
Unified Account
Maximize your capital efficiency
Demo Trading
Futures Kickoff
Get prepared for your futures trading
Futures Events
Participate in events to win generous rewards
Demo Trading
Use virtual funds to experience risk-free trading
Earn
Launch
CandyDrop
Collect candies to earn airdrops
Launchpool
Quick staking, earn potential new tokens
HODLer Airdrop
Hold GT and get massive airdrops for free
Launchpad
Be early to the next big token project
Alpha Points
NEW
Trade on-chain assets and enjoy airdrop rewards!
Futures Points
NEW
Earn futures points and claim airdrop rewards
Investment
Simple Earn
Earn interests with idle tokens
Auto-Invest
Auto-invest on a regular basis
Dual Investment
Buy low and sell high to take profits from price fluctuations
Soft Staking
Earn rewards with flexible staking
Crypto Loan
0 Fees
Pledge one crypto to borrow another
Lending Center
One-stop lending hub
VIP Wealth Hub
Customized wealth management empowers your assets growth
Private Wealth Management
Customized asset management to grow your digital assets
Quant Fund
Top asset management team helps you profit without hassle
Staking
Stake cryptos to earn in PoS products
Smart Leverage
NEW
No forced liquidation before maturity, worry-free leveraged gains
GUSD Minting
Use USDT/USDC to mint GUSD for treasury-level yields
More
Trending Topics
View More8.44K Popularity
10.43K Popularity
52.05K Popularity
14.06K Popularity
89.27K Popularity
Pin
Many people think that depositing BTC into a lending protocol will automatically update the price— but that's not how it works.
Blockchains are a "closed system" and cannot see outside world prices directly. The value of your collateral, how much you can borrow, and when liquidation occurs all depend on something called an Oracle.
What is an Oracle? Simply put, it's an intermediary that brings off-chain data onto the blockchain. Professional data sources like Chainlink and Pyth continuously provide price quotes to smart contracts 24/7. For example, if the current BTC price is $80,000, the Oracle will convert it into a number like 8000000000000 on-chain (retaining 8 decimal places for accuracy).
Your entire lending lifecycle is guided by it—
**What is the value of your collateral?** It decides.
**How much can you borrow?** The data it provides determines.
**When is a forced liquidation triggered?** Its alert signals decide.
This is where the risk lies. If the Oracle is attacked, reports errors, or updates with delays, the consequences can be severe: innocent users could be liquidated instantly, or the protocol itself could be drained by hackers. That’s why top-tier DeFi lending protocols are extremely cautious in choosing Oracle sources—because it directly affects the safety of user funds.