Sourcing Chainlink price data for more reliable payment collateralization
Announcing Flexa’s adoption of Chainlink Price Feeds, to make digital asset payments even more trustworthy and secure.
Flexa is delighted to announce an integration with Chainlink — the market-leading decentralized oracle provider — in order to further improve the reliability and consistency of collateralization for all transactions on its global, pure-digital payments network.
Starting today, Flexa Capacity will begin sourcing exchange data directly from Chainlink’s widely-adopted Price Feeds (including BTC/USD, ETH/USD, DAI/USD, AMP/USD, and others), to obtain tamperproof, fair-market exchange rates for each of the digital dollars, tokens, and cryptocurrencies that Flexa supports for spending at more than 40,000 stores and retail locations across the US and Canada.
With Flexa, any merchant can accept instant, guaranteed payments from their customers in any of more than two dozen digital currencies, while also receiving payouts in the currency of their choice. To enable this real-time settlement, the Flexa Capacity platform — powered by Amp — collateralizes each payment in real time with help from a decentralized community of Amp stakers all over the globe.
Going forward, Flexa Capacity will use Chainlink price feeds as a critical component of the payment collateralization process. And soon, Chainlink price data will also be made available to Flexa developers as part of the upcoming Flexa Spend SDK.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain to 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 smart contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance, insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds, and the users and developers who integrate Chainlink can be assured that they are accessing accurate price data, high network uptime, decentralized security, and on-chain transparency that allows for independent verification of all exchange rates received. At Flexa, we chose Chainlink’s oracle solution because it’s been proven to secure significant economic value on the Ethereum mainnet for many of the world’s leading DeFi applications, including Aave and Synthetix.
Why Chainlink’s oracles are important
In order for Flexa Capacity to instantly collateralize retail payments in a secure and efficient manner, Flexa must be able to reliably access trustworthy prices for Amp, Bitcoin, Ether, Litecoin, and each of the other currencies supported for payments on the network. And since these currency prices are a product of the price discovery that happens in real time across many different trading environments, an aggregated, volume-adjusted price feed for each currency is critical to obtain an accurate reflection of market-wide prices.
However, smart contracts like Flexa Capacity cannot easily make external API calls. Instead, “blockchain oracles” bridge this gap, enabling access to data from off-chain APIs in a secure and reliable way, mitigating the potential for data manipulation attacks and network downtime to interrupt payment flow.
After evaluating a variety of oracle solutions, we selected Chainlink Price Feeds because they provide Flexa users and developers with the most robust set of assurances regarding the security, reliability, and data quality of price data provided. Some of the approaches that Chainlink uses to provide such guarantees include:
- High-quality data sources — Chainlink Price Feeds source data from numerous independent data aggregators, meaning that each data source represents a volume-adjusted aggregate of all trading environments (as opposed to the price at a single exchange).
- Decentralized infrastructure — Chainlink oracle networks generate Price Feeds using multiple secure nodes and premium data aggregators, ensuring that data delivery and data sourcing are resistant to any single point of failure.
- Verifiable transparency — All Chainlink Price Feeds are supported by on-chain visualizations of the oracle networks powering them, allowing users to independently monitor and verify that they are getting a fair market exchange rate.
- Proven track record — Chainlink Price Feeds are live on the Ethereum mainnet for almost every currency that Flexa supports for payment, and are used and financially supported by a collection of top DeFi projects.
“We’re dedicated to continuing to decentralize the core components of the Flexa platform, and are proud to now be using Chainlink to decentralize our on-chain pricing mechanism,” said Zachary Kilgore, VP Engineering at Flexa. “By integrating Chainlink directly into our collateralization platform and Spend SDK, every merchant and developer who uses the Flexa network going forward will, by default, also be leveraging the best-in-class price feeds and oracle infrastructure.”
This integration marks the first in a series of integrations that Flexa is exploring with Chainlink, each of which will help us continue our mission of rearchitecting the retail payments industry for the betterment of consumers and merchants. To stay on top of our continued progress to make payments better for everyone, join us on Twitter and Discord. To learn more about Chainlink and decentralized blockchain oracles, visit the Chainlink website, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.