Adaptive Solutions for DeFi: Leveraging T2EMA’s Dynamic Oracle Protection

Decentralized Exchanges (DEXs) are vital to the crypto ecosystem, especially in Decentralized Finance (DeFi), offering autonomy, privacy, and yield opportunities. With nearly 1 million users and billions in trading volume, they remain vulnerable to price oracle manipulation, with 41 attacks reported by Chainalysis in 2022. This paper presents T2EMA, a protocol combining Trimmed Mean (TM) and Exponential Moving Average (EMA) for price calculation. T2EMA detects outliers that signal manipulation and adjusts its smoothing factor to counter attacks. It can be easily integrated into on-chain and off-chain oracles. By reducing price fluctuations, T2EMA improves the security and reliability of DEXs, addressing vulnerabilities with a more resilient price aggregation method.