Oracle-Based DEXs are trading venues that rely on an oracle price feed to price assets in the exchange. Market pricing for assets is “imported” from external venues rather than deduced via organic price discovery. Protocols like GMX, Mycelium and MUX use this type of pricing to enable zero-slippage trades. However, as these price feeds are secondary data sources, there are risks associated with this, such as oracle front-running and price manipulation of assets with low liquidity.
