CyberFi integrates Chainlink Price Feeds on Mainnet for Secure LP Management Automation: A Solution to Impermanent Loss.
CyberFi is excited to announce our first integration with market-leading oracle network Chainlink, which will serve as the exclusive oracle provider to CyberFi. CyberFi is a DeFi automation platform, providing users with the ability to create limit orders on decentralized exchanges, as well as being the only solution in the DeFi market for Automatic LP Management.
Using the popular Chainlink Price Feeds, users can now build a variety of LP strategies to protect against impermanent loss (IL) and market volatility that are triggered by reliable asset prices reported by the Chainlink Network.
Given the continuous growth of AMMs, there are now over $4 Billion of locked assets within liquidity pools (LPs). LP tokens are a big part of the DeFi ecosystem, not only used to create liquidity and bootstrap markets, but also to earn fees, allocate liquidity farming incentives, and trade as assets themselves. While LPs are becoming more and more popular, there have not been widespread solutions to actively manage LP positions. This inherently creates a huge risk of impermanent loss (IL) due to the inability for users to automate the management of their LP positions.
CyberFi has created an off-chain automation platform where users can set “smart orders” that allow them to enter or exit LP positions based on price movements of the underlying assets. Thus, users are able to mitigate IL through active strategy building, such as removing the risk of sharp price movements by being able to define under what market conditions they want to automatically enter/exit positions. Additionally, when removing tokens from an LP position, the user may choose to sell one of the assets from the LP into ETH or a stablecoin.
Our “smart orders’’ rely on price feeds to determine when a LP position should be changed. The Chainlink ETH/USD decentralized Price Feed will now serve as the core reference for on-chain actions requiring the ETH/USD price, as well as act as an always online backup to our own off-chain system that pulls data feeds into our UI for hundreds of tokens traded on Uniswap. This will allow CyberFi to have secure, fast, and reliable price feeds for LP management.
CyberFi is releasing our platform Beta later today! $CFi token holders will be able to use Limit Orders, Cross Limit Orders, Automated LP Management based on price movements of underlying assets, Auto-Exit, and Auto-Entry into LPs using Automatic swaps.
We selected Chainlink as our go-to price feed oracle provider because it’s an established framework already proven to secure over $6 Billion in value for live DeFi applications, including for leading projects like Aave and Synthetix. Chainlink ensures data accuracy and security using several key features, including:
- High-Quality Data: Price data is sourced from multiple premium off-chain data aggregators, which aggregate prices from hundreds of exchanges and weight it to generate volume-adjusted market-wide prices that are inherently more accurate and resistant to data manipulation attacks (e.g; flash loans) than single exchange price data.
- Secure Oracle Nodes: Oracle networks are made up of multiple, independent, security-reviewed nodes run by leading security and blockchain DevOps teams, protecting users against Sybil attacks.
- Decentralized Computation: Each Price Feed is decentralized at the oracle and data source level, leading to highly available and manipulation resistant data feeds.
- Transparent Infrastructure: All Price Feeds can be monitored in real-time by any user, allowing them to verify the performance of oracle networks and individual nodes to ensure they are getting fair market prices.
According to CyberFi CTO Igor Sokolov, “Chainlink has proven to be the most reliable and transparent oracle provider in the blockchain market and has rightfully dominated the DeFi space. APIs are at the core of all web applications, in the same way DeFi projects can’t operate without oracles. Using Chainlink Price Feeds will enable CyberFi to reach a higher standard of quality, reliability, and safety. This ensures that LPs are able to make sound decisions based on fair market asset values when managing their positions, all without concerns over various data manipulation or downtime vulnerabilities.”
In addition to the base ETH-USD Price Feed, CyberFi is currently working on multiple additional automation features that will leverage other Chainlink oracles. Further details to be released in the coming weeks.
CyberFi’s mission is to bring the DeFi 2.0 experience and add a new infrastructure layer through Automation. Users of our platform will experience zero-stress, automated DeFi trading, farming and yield generation, smaller fees and tools for Impermanent Loss mitigation.
Telegram ANN Channel: https://t.me/cyberfi
Chainlink is the most widely used and secure way to power universal 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.