At 3 a.m., I completed an extreme scenario simulation on the testnet—BTC plummeted 40% in five minutes, with ETH dropping simultaneously. This is not just theoretical discussion but a stress test using actual data sources on mainstream lending protocols.

The results are alarming. Traditional oracles behave like lagging videos during intense market fluctuations, with critical price information lost; whereas new-generation oracles maintain accurate data transmission throughout.

**Why this test is necessary**

By 2025, DeFi is no longer small-scale. Lending protocols with billions in TVL rely on millisecond-level price updates. If an oracle experiences delays or gaps, users’ liquidation commands can become chaotic—leading to disaster in extreme market conditions.

**Testing methodology**

Scenario setup: Simulate BTC and ETH halving within five minutes
Benchmark indicators: Quote delay, data gap rate, error-triggered liquidation ratio
Special design: Inject false spike data from small exchanges to test oracle recognition capabilities

**Differences in performance between two types of oracles**

The issues with traditional solutions are obvious: delayed price updates, loss of critical data points at key moments, collective triggering of liquidation orders at market bottoms (typical of slippage risks). They accept false data without risk detection mechanisms.

The new-generation oracles demonstrate different characteristics: smooth data updates, preservation of information integrity during extreme volatility, and effective filtering of false data.

This stress test confirms a simple fact—an oracle is not just a data transporter but the nervous system of the DeFi ecosystem. When a real market tsunami hits, its stability determines whether user funds are safe.