Smart Contracts Explained

A protocol upgrades its proxy contract to new logic. What happens to the address you deposited to?

• It changes, so you must move your funds to the new address
• It stays the same; only the logic behind it changes
• It is deleted along with the old logic

A lending contract needs today's ETH price to decide whether a loan is safe. Where does that price come from?

• The contract looks it up on a price website
• An oracle posts it onto the chain, and the contract reads it there
• The developers type it in each morning