Oracles are the most critical piece in the design of any financial system

Oracles are the most critical piece in the design of any financial system. While Aave stood resilient during the crash, Binance suffered losses because it used its internal books to price collateral, which didn’t correctly represent the underlying asset’s value and caused temporary price deviations.

DeFi proved its maturity and resilience. The bluechip DeFi protocols remained operational with no downtime, bad debt or insolvency. Transparent risk management practices and open discussions indeed work.

Binance suffered the most. This has several structural, operational and systemic reasons to be discussed later in this report.