EasyFi To Integrate Chainlink Price Feeds
Integration to Power DeFi Lending on Matic Network
It gives us immense pleasure and pride to announce that EasyFi will integrate Chainlink, the most widely used decentralized oracle network, to securely access reliable price feeds within our DeFi lending protocol. The Chainlink Network provides highly available, tamper-resistant price feeds derived from an aggregation of premium off-chain data sources, ensuring EasyFi’s lending and borrowing operations function as exactly as intended.
Our foray into decentralized lending made it imperative that we provide EasyFi users the most secure and performant infrastructure in order to protect their digital assets. Having Chainlink and their decentralized price oracle networks integrated with the EasyFi platform will enable us to issue loans anchored to fair market values, maintain a secure and transparent liquidation mechanism, and unlock the full potential of our smart contracts.
Understanding Blockchain Oracles
A blockchain oracle is an entity or device that connects deterministic blockchains with external data existing in the real world outside the blockchain (off-chain), such as data providers, web APIs, IoT data, and more. An oracle retrieves and feeds data directly to a smart contract on a blockchain so that it can execute conditional logic based on that data.
Blockchains cannot natively perform oracle functions due to the way they form consensus. For example, each blockchain node (miner) needs to verify each transaction, which if extended to oracle functions means each node would need to simultaneously call and agree upon an external API call for verification and validation. Such a model isn’t practical or scalable as each node would need numerous API subscriptions.
On the other hand, Chainlink Price Feed oracle networks rely on independent nodes and oracle networks to call APIs and broadcast that data on-chain. Integrated DeFi smart contracts can then call the reference contract storing the latest price update directly to the blockchain. Chainlink price oracles are the quickest and most secure way for DeFi smart contracts to retrieve the latest prices of crypto assets from an external data source. This is done with just a single function call.
EasyFi’s Chainlink Integration Provides Several Important Features
- Chainlink price feeds will provide fair, transparent, and secure collateralization ratio checks on borrowers, alerting EasyFi smart contracts when users have hit their liquidation threshold.
- Chainlink oracle networks will boost EasyFi’s security infrastructure so it can scale to secure a larger pool of user funds and greater loan volumes.
- Chainlink is blockchain agnostic and thus will provide secure asset prices directly on our native platform of choice — Matic Network.
- Chainlink price oracle networks source data from multiple independent high-quality off-chain aggregators, which provide market coverage across all trading environments, providing a strong validation mechanism for data quality, validity, completeness, and reliability.
- Chainlink price oracles are made up of a decentralized network of Sybil-resistant oracle node operators, ensuring round-the-clock price feed availability and manipulation of our liquidation mechanism
- Chainlink’s oracle networks provide on-chain audit trails of prices, bringing full transparency to our lending and borrowing operations.
- EasyFi’s highly performant infrastructure blended with Chainlink’s decentralized oracle infrastructure will lead to high-performance DeFi products that can secure billions of dollars in value.
We believe that through these features and more, our platform will be much safer, systemic risks will be reduced, and we will unlock the next wave of adoption and growth.
Layer 2 enhances our Chainlink price oracles
There are multiple advantages of being on Matic with respect to oracles.
- Matic offers high-speed and inexpensive transactions. Because of this high transaction throughput, the oracles will be able to provide high-frequency price updates.
- Integrating Chainlink with Matic’s L2 capabilities will help us infuse greater efficiency, speed, and accuracy into our existing liquidation system.
For the uninitiated: Liquidation is the process of repayment of your loan to the lender when your borrowing falls below the required level of collateralization. In this situation, the loan is repaid by selling off some of the collateral you have placed to buy back the asset owed to the lender.
The EasyFi and Chainlink integration will set a precedent for upcoming projects building on the newly expanding layer-2 financial infrastructure. We believe it will boost the layer-2 DeFi ecosystem on Matic Network, as Chainlink is the first price feed oracle network integrating with Matic Network. This unleashes the potential of huge innovation possibilities.
Commenting on the long term perspective of the integration, Ankitt Gaur, CEO EasyFi said, “As EasyFi moves forward with fulfilling the objectives laid out in our roadmap, we will be continuously working with Chainlink to expand into multiple networks and new layer-2 protocols in the future. Integrating Chainlink price feeds into EasyFi and Matic Network gives our users security from the most secure and reliable oracle solution, already securing billions in DeFi value. We are looking forward to a deeper relationship with Chainlink in our future endeavors, with the aim to fulfill our quest to offer more meaningful lending products to our users.”
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.
EasyFi is a universal layer 2 lending protocol built for DeFi focused on scalability, composability, and adoption. It has been designed as an open and inclusive financial network infrastructure to run on public networks to facilitate an end to end lending & borrowing of digital assets and related financial products. EasyFi is being built upon the ethos of permissionless networks & automation of smart contracts.
To learn more about $EASY and EasyFi, please go through our whitepaper and other articles on this publication.