Cost of Manipulation in AMM-Based Oracles (opens in new tab)

We study the robustness of AMM-based on-chain price oracles to strategic manipulation. An attacker trades against constant product automated market makers (CPMMs) to distort an on-chain oracle, arbitrageurs restore cross-pool and cross-venue consistency, and an oracle designer chooses how to aggregate pool quotes. Taking an efficient-market-hypothesis (EMH) view of the off-chain "true" price, we define the \emph{cost of manipulation} as the mini...