Bribe-Based Oracle Echoes: Incentive Corruption in DeFi and Stablecoin Price Feeds

Abstract

<b><i>Bribe-Based Oracle Echoes</i></b> describe a class of incentive-layer attacks in which economically rational adversaries influence oracle participants to repeatedly reinforce distorted data outputs without directly compromising oracle infrastructure. Unlike overt oracle manipulation, these attacks exploit incentive alignment and tolerance-band logic to create feedback loops in which biased signals are echoed, amplified, and normalized across decentralized finance (DeFi) and stablecoin systems. This paper formalizes the threat model, identifies structural enablers, and demonstrates why decentralization alone is insufficient to prevent economically induced oracle drift.