Today I want to discuss a often-overlooked issue in DeFi—the cost of oracles.



Many people complain when using decentralized applications, saying "Why is it so laggy?""Why are the prices so different?""I was suddenly liquidated," and some features even disappear unexpectedly. However, the real underlying reason is rarely questioned. In fact, all of this points to the same problem: the hidden accumulation of oracle costs.

This cost is like a pebble in a sandpile. Initially, it’s barely noticeable, but as the ecosystem expands, data volume increases, and product complexity grows, it begins to surface and eventually becomes an insurmountable bottleneck.

**In the early stages, everything was manageable.** With small-scale applications, any oracle sufficed—low fees, fast updates, and a smooth user experience. But once cross-chain interactions increase, asset types diversify, and functionalities become more complex, the situation changes dramatically. Each data update incurs a cost, and it’s a continuous expense. Project teams are left with only a few options—either reduce update frequency (using outdated prices), support fewer tokens (limiting functionality), or introduce unreliable data sources (posing risks).

These seemingly cost-saving measures actually erode the system’s security. During volatile market conditions, vulnerabilities are exposed.

Some have already recognized the severity of this issue and are starting to focus on oracle efficiency itself. Instead of allowing costs to spiral out of control, designing more efficient oracle mechanisms could become the key to next-generation DeFi product competition.
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