Many people have not understood what this article is really talking about. A strange phenomenon is that CEX and PERP DEX are being slaughtered and liquidated, but on chain lending protocols are hardly affected? What is the truth behind this? Normally, a platform with high liquidity assets, especially those entrusted to users, should have a rigorous and sound decentralized Oracle pricing mechanism. However, BN used its own single data source from the spot market as a clearing reference. So, the abnormal event of PAXG soaring to $3600 occurred. In theory, PAXG should be anchored 1:1 with the gold price, but due to the single Oracle problem, PAXG has experienced a non structural detachment, deviating too much from the true market price. The normal gold price is 2900, but the quote on BN has reached 3600. Why? It's easy to understand. During a collapse, large investors sell risk assets crazily and buy safe haven assets such as PAXG. Strong demand amplifies asset prices, and there is no external verification mechanism or even weighted average price. Can we avoid losing our anchor? This also explains why there are so many strange pin shapes. However, in contrast, mature on chain DeFi lending protocols mostly adopt decentralized Oracle, which aggregates multi-source data on the chain such as CEX and DEX, avoiding the black box operation of "pricing oneself". Speaking of which, everyone will definitely feel that I want to promote how important decentralized Oracle is, No， Under the huge liquidity support of CEX, centralized Oracle is not a problem under normal circumstances. The crux and original sin lie in the disorderly combination of Oracle's centralization and leverage. Think about it, what would happen if 100x leverage+cross margin mechanism+encapsulated assets were included in margin+depleted and thin order book liquidity were highly stacked at a certain moment? This reminds me of the 2010 US stock market crash, where high-frequency algorithms wiped out $1 trillion in market value within 15 minutes. The cause was a large order that broke through a fragile order book, triggering algorithms to stomp on each other - selling led to a sharp drop in price, which triggered more algorithm stop losses, liquidity instantly dried up, and fell into a death spiral of "sell → fall → sell more". How astonishingly similar is this to the script of the 1011 crash? Oh, no, there's a slight difference: In 2010, traditional financial markets had circuit breakers, while by 2025, the cryptocurrency market will remain unregulated 24/7.