Bonded Finance Leverages Chainlink Price Feeds to Calculate Collateral and Liquidation Ratios
We’re excited to announce that Bonded Finance has integrated Chainlink Price Feeds for the mainnet launch of our Primary Lending Facility. By integrating the industry-leading decentralized oracle network, we’ll gain access to the high-quality, tamper-proof price feeds needed to provide accurate and real-time calculations of altcoin collateralization and liquidation ratios for stablecoin loans. Chainlink Price Feeds are available for every altcoin listed on the Primary Lending Facility.
We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
In order to help secure our price feeds solution, we needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features such as:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
- Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.
We are also considering the possibility of further integrations in the future in order to automatically and dynamically adjust loan-to-value rates on the Primary Lending Facility. Should we decide to go this route, we’ll be sure to analyze implementations of Chainlink Keepers, a secure and decentralized smart contract automation service.
About this implementation, Paul Mak, Bonded’s CEO and Founder, stated:
“Having a verifiable source of truth can be the difference between getting liquidated and securing a profitable investment. As we venture into creating customized price feeds for genuinely alternative assets, Chainlink Price Feeds were the go-to choice in helping us claim “veracity” when assessing interest rates and loan-to-value ratios. The reputation of Chainlink certainly doesn’t hurt, but the stakes are as real as it gets. Chainlink remains the standard in crypto for a reason and we are elated to have integrated the industry’s most reliable and time-tested price data feeds.”
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
About Bonded Finance
Bonded Finance is an all-inclusive DeFi solution for altcoin holders. Our mission is to create innovative financial tools that empower everyone to invest like a professional. The Bonded Finance platform will be more than a simple lending and borrowing platform: It will help both individual investors and projects lock tokens, mint stablecoins, gain exposure, access capital, and more.
For more information on Bonded Finance, visit our website.