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A Chainlink price feed malfunction reportedly triggered over $500,000 in liquidations on Avalanche’s Euler Finance, reigniting debates over oracle reliability in DeFi. The incident involved the deUSD stablecoin, which was inaccurately priced at $1.03, leading to forced liquidations for leveraged users.
- Chainlink's deUSD price feed inaccurately reported $1.03, triggering $500K+ liquidations on Euler Finance.
- Critics argue Chainlink's reliance on APIs and VWAP in illiquid markets exposes DeFi to risks.
- Chainlink defends its oracle, stating protocols must implement additional checks for data interpretation.
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