dFund to Use Chainlink Oracles to Bring Its Decentralized Hedge Funds and P2P Loans to Life
dFund’s stated mission has been to bridge the gap between the legacy financial system and the world of cryptocurrencies by making DeFi a better and safer place for all using transparency, security, and a community-centered approach. In doing so, dFund is proud to announce that we have chosen market-leading decentralized oracle network Chainlink as our go-to oracle solution to support a wide range of institutional-grade DeFi tools, products, and services offered on the dFund platform, ultimately making DeFi easily accessible to the average cryptocurrency enthusiast.
dFund’s all-encompassing platform aims to offer a vast array of innovative DeFi features to users, including:
- Decentralized hedge funds that anyone on the platform can found, manage, or invest in.
- Direct p2p lending for both under-collateralized and over-collateralized loans.
- Performance and credit ratings to bring better identity and risk information on-chain to support new solutions that require it.
- DAO governance to facilitate community-oriented and transparent decision making processes.
- Secondary marketplace for synthetic assets, where debt from the aforementioned DeFi loans can be bought and sold, similar to the bond market of legacy finance.
Since most DeFi products need external market data and asset prices to automate specific functions, such as to calculate the current value of collateral, it’s critical to have accurate, secure, and reliable data feeds available directly on the blockchain. However, blockchains do not inherently generate this information, and smart contracts cannot inherently call external APIs to obtain it. As such, we needed an additional piece of infrastructure known as an oracle to fetch and deliver external financial market data to the dFund smart contracts in order to securely automate our various DeFI services without any central point of failure. Without secure and reliable data feeds, the smart contract could cause catastrophic financial damage to all parties involved as garbage inputs lead to garbage outputs.
As the most widely used and trusted decentralized oracle solution, dFund will integrate Chainlink Price Feeds to access premium financial market data on-chain to support our suite of DeFi product offerings, making them more precise, robust, and resilient. The initial integration will involve using Chainlink Price Feeds within our direct p2p loans, which will be referenced when issuing loans and checking loan collateralization. This will first take place within the dFund Beta on Ethereum, after which it will become available on Polkadot once Parachains are rolled out and dFund has moved to Polkadot. We also plan to expand our Chainlink integration beyond price data by accessing new forms of credit information, interest rates, and more.
We selected Chainlink Price Feeds because they provide a multitude of time-tested features that already secure tens of billions of dollars across DeFi:
- 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 API downtime, flash crash outliers, and data manipulation attacks like flash loans.
- 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 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.
- Transparent Reputation — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.
Savo Vukcevic, the CEO of dFund commented on the integration by saying:
“I’m incredibly excited to work with Chainlink, the number one oracle solution in the blockchain industry. I really believe this integration will have an immensely positive impact on our project, with price feeds for our DeFi loans only being the tip of the iceberg for the many other Chainlink solutions we plan to integrate in the future.”
As I like to say, we’re not just trying to build a project, but instead, build an entire ecosystem that Chainlink will play a critical role in making objectively more secure, functional, and successful. There are many synergies between the two projects, including the fact that we both have a user-centric and community-oriented approach. In fact, you can hardly find a project with a more active, dedicated, and amazing community than Chainlink, or one that’s more determined in making technology that’s easy-to-use for its users.
But what really made me 100% certain that we made the right decision in choosing Chainlink was the fact they are building towards the future of DeFi. dFund has been working on new products like under-collateralized loans and credit ratings for months, so when the Chainlink v2.0 whitepaper got released and we saw Chainlink has been actively developing innovative yet practical decentralized identity solutions, we were confident they could support our highly ambitious future DeFi service offerings.
I think it’s incredible to see three ecosystems intersecting with one another in dFund, Chainlink, and Polkadot to create a superior financial system. This is what the future of DeFi looks like and I am happy to be on the forefront of it all. We are all about making something that can be used by both Wall Street and Wallstreetbets, traders from JP Morgan Chase and TikTok, ultimately bridging the gap between legacy finance and crypto. What better project to help us achieve that than Chainlink, which is quite literally providing the infrastructure for bridging off-chain data to blockchain.”
To learn more about dFund and what we are building, you can visit our website https://d-fund.io and become a part of our growing community by joining our official Telegram channel https://t.me/dFundProject and following us on Twitter https://twitter.com
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.