BiFi Integrates Chainlink Price Feeds into its Multichain DeFi Platform
We are proud to announce that the world’s leading decentralized oracle network, Chainlink, has been integrated with Bifrost to enhance the security and stability of our multichain DeFi platform, BiFi. Chainlink Price Feeds provide provably secure and reliable price oracles backed by high-quality data, ultimately proving indispensable to BiFi’s realization of a robust multichain DeFi ecosystem.
BiFi’s lending protocol currently leverages the following Chainlink Price Feeds to price collateral during loan issuance and liquidation processes: ETH/USD, LINK/USD, USDT/USD, and DAI/USD.
What price oracles mean for DeFi
Oracles are fundamental infrastructure for blockchains, and especially for the DeFi ecosystems which requires financial data to trigger on-chain applications. Blockchains can inherently only see what happens on-chain, but there is an unfathomable amount of information in the real world that exists off-chain. All DeFi services like lending, margin trading, and derivatives depend on oracles to obtain price data generated from off-chain sources, particularly aggregating from numerous sources.
However, the explosion of DeFi platforms in 2020 led to a spike of DeFi exploits, specifically manipulation of centralized and/or single-source price oracles via flash loans. The onslaught of flash loan attacks on DeFi platforms exposed how easy it is to instantaneously manipulate prices through large buy orders and cause faulty liquidations, allowing attackers to then purchase the liquidated assets at far below market value.
The hundreds of millions stolen in these attacks highlight the vulnerability of DeFi protocols that do not use secure price oracles. An insecure oracle design can lead to a massive loss of user funds, such as those relying on DEX-generated prices or other oracle designs that do not have broad market coverage in their price feeds across all trading environments. Therefore, to protect user funds, a secure and reliable oracle network with high-quality data is foundational to any DeFi application.
Security has always been at the forefront of the development of Bifrost and BiFi. It’s obvious that finding the most secure price oracle was a crucial choice for BiFi, as secure oracles can preempt these price manipulations, help prevent novel attacks, and make our ecosystem safer.
Choosing Chainlink as BiFi’s Go-To Oracle Solution
Unlike centralized or single-source price oracles, Chainlink is a decentralized oracle network that enables smart contracts to securely access and aggregate off-chain data feeds. Chainlink is the most widely-adopted oracle solution, used by both top DeFi projects and large enterprises, and collectively securing over $10 Billion dollars in on-chain crypto-assets.
We selected Chainlink because it provides the most secure and reliable price oracles in the market through a well thought out infrastructure design. Each Chainlink Price Feed is secured by a decentralized network of independent, security reviewed node operators run by leading blockchain DevOps and security teams. These nodes collectively source data from numerous premium data aggregators, which collect data from hundreds of exchanges, weight it by volume, and remove outliers. By decentralizing both the data sourcing and data delivery processes using secure nodes and premium data, BiFi will receive accurate price data in a highly available and manipulation resistant manner, which is inherently resistant to flash loan and Sybil attacks.
Chainlink places academic research and development at the forefront to realize the vision of creating a truly secure DeFi environment. We are excited to see their recent third generation Oracle network upgrade, OCR, that will provide both security and scalability to DeFi applications. Bifrost and BiFi will utilize these powerful components of Chainlink to provide users with robust and practical financial services at an accelerated go-to-market pace.
— Dohyun Pak, CEO of Bifrost
We’re thrilled to empower BiFi to secure and grow it’s DeFi platform by providing them with secure and reliable Chainlink oracles. Chainlink’s high-quality data and time-tested decentralized infrastructure ensure BiFi applications are able to launch new DeFi markets in a quick and easy manner while still thoroughly protecting user funds against price oracle attacks and network downtime.
— Daniel Kochis, Head of Chainlink Business Development
BiFi plans to integrate additional Chainlink Price Feeds in the upcoming months, such as for new assets like BNB, DOT, KLAY, and BTC. Chainlink’s unparalleled capacity to support and secure oracles will be indispensable to seeing through our long-term vision.
Bifrost x Chainlink AMA
There will be two AMAs with Chainlink during the following dates:
English AMA: Feb 18th, 1:00 AM (UTC)
Korean AMA: Feb 25th, 11:00 AM (UTC)
We will share details of the AMA on our social medias and Telegram, so stay tuned.
Bifrost BFC_K Giveaway
To celebrate the integration with Chainlink, we are giving away 1000 BFC_K to 10 lucky winners each. The event will start today, February 2nd and end on the 8th. We will announce the winners next week. Check out Bifrost Twitter for more information!
Powered by Bifrost’s multichain technology, BiFi is the multichain DeFi project that will connect not only Ethereum but also other blockchains like Bitcoin, Tron, Binance Smart Chain, and Klaytn, thereby expanding the DeFi ecosystem currently limited to Ethereum. Through this multichain connectivity, BiFi will lower the gas fees, increase accessibility, and expand the ecosystem to enable more innovative financial products to more people.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.