I have a bone stock 2000 C4 coupe as my DD but I do the odd track day. Last time on the track I noticed that my oil pressure gauge drops down as low as '2' in some corners. It goes back up to '5' once I exit the corner.

Is this normal? Could I be damaging my engine?

 

Do a search on X51 oil pan and do the upgrade, goes a long ways in helping to solve the problem. Has to do with the oil sloshing to one side or the other in the pan during long cornering.

 

+1 install the X51 pan before you track the car again.

 

....and replace your oil pressure sending unit. Cheap insurance.....