Dot Finance Integrates Chainlink Price Feeds to Secure DeFi Yield Aggregation Solutions
Welcome, Dot Finance Community!
We have successfully launched our PINK token and opened up the first round of auto-compounding vaults for yield farming. Thank you to everyone that made our launch a success.
We are dedicated to continuing this forward momentum by ensuring we have a fully-featured and highly secure decentralized finance (DeFi) platform. In support of this goal, we are excited to announce that we have integrated the industry standard Chainlink Price Feeds into our yield aggregator to secure prices for the underlying assets used in various strategies. Chainlink Price Feeds supply tamper-proof, up-to-date, and precise market data, protecting user funds against situations like API downtime, flash crash outliers, and data manipulation attacks using flash loans.
Our initial integration supports the following Chainlink Price Feeds on Binance Smart Chain (BSC): BUSD/USD, DOT/USD, LUNA/USD, LINK/USD, LIT/USD, RAMP/USD, REEF/USD, and USDT/USD. Once we expand to Polkadot, we plan to leverage the Chainlink Oracle pallet to use and sponsor native Chainlink Price Feeds on Polkadot.
Securely Compounding Yields With Chainlink Price Feeds
Dot Finance is an innovative yield farming solution currently live on BSC that features novel yield farming strategies to maximize returns. By leveraging BSC’s high-throughput and low-fee environment, our vaults automatically compound yields and split the costs among all users to optimize the farming experience. We are also building a suite of products for the Polkadot ecosystem, leveraging its highly scalable and interoperable blockchain to bring DeFi to a broader range of users.
Chainlink Price Feeds are crucial because they ensure our smart contracts execute based on real-time prices for the underlying assets used in various strategies. This is key to changing yield farming strategies, and calculating yield value in vaults so it can be fairly distributed to users.
We decided to integrate Chainlink Price Feeds because they are the most time-tested decentralized oracle networks for price reference data, already securing tens of billions of dollars for leading DeFi projects across various blockchain environments. Chainlink is also blockchain agnostic and currently live across multiple blockchains, making our future migration to Polkadot seamless. Some of the unique benefits of Chainlink Price Feeds include:
- 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 from outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are resistant to market volatility and data source problems.
- 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 for reliability, even during high gas prices and extreme network congestion.
- 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 the oracle network.
- Economy of Scale — Chainlink Price Feeds benefit from an economy of scale effect, where increasing adoption allows multiple projects to collectively use and fund shared oracle networks to fetch commonly required datasets. This allows DeFi projects to get premium data quality and robust oracle security for a fraction of the total cost.
With this integration, we know the data foundation of our platform will be rock solid, empowering us to focus on building the best DeFi suite of products for the Polkadot ecosystem.
“Our goal is to provide users with the most reliable DeFi platform across both Binance Smart Chain and Polkadot. Our integration of Chainlink Price Feeds provides us with the high quality, tamper-resistant price data needed to make that a reality,” stated Nir Rozin, Co-Chief Executive Officer of Dot Finance. “We look forward to integrating more Chainlink Price Feeds and other Chainlink decentralized services in the future to enhance the utility of our platform and bring more value to DeFi users.”
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper.
About Dot Finance
DOT Finance provides a variety of Defi apps dedicated to the Polkadot Ecosystem. It is built as a Polkadot layer that can provide an end-to-end solution for the entire DeFi and Web3.0 stack.