Multiplier Integrates Chainlink Oracles to Secure its Lending Operations on BSC
Multiplier is proud to announce that we have integrated Chainlink into our Multi-Chain Lend (MCL) protocol live on Binance Smart Chain (BSC). As the most widely-adopted decentralized oracle solution, Chainlink’s secure and reliable Price Feeds ensure that Multiplier’s MCL protocol consistently references fair market prices when issuing loans and triggering liquidations.
Initially, Multiplier will support a range of Chainlink oracles, including Price Feeds for BNB-USD, BUSD-BNB, BTC-BNB, USDC-BNB, USDT-BNB, DAI-BNB, and ETH-BNB.
Why Chainlink Price Oracles are Key to MCL
In order to provide users with accurate asset valuations representative of the entire global crypto marketplace, the MCL protocol has to take into account the prices and volume taking place across DEXs and CEXs, both of which exist outside of the Binance Smart Chain (off-chain). Thus, we require a blockchain oracle to bring volume-adjusted, aggregated price feeds to BSC (on-chain) as a means of properly calculating the value of collateral and crypto-assets.
After reviewing various oracle solutions, Multiplier chose Chainlink as its oracle provider of choice because it’s the most provably secure and time tested oracle network, already trusted to secure over $10B in USD value for leading DeFi projects. Importantly, it’s also integrated natively on BSC, allowing Multiplier’s MCL to access it directly on-chain and at the native speeds of BSC.
Some of the more technical reasons we selected Chainlink as our go-to oracle solution include:
- High-quality data — Price data is sourced from multiple premium off-chain data aggregators, resulting in wide market coverage that covers hundreds of exchanges, takes into account volume, and protects users against data manipulation attacks (such as those induced by flash loans).
- Secure Nodes — Chainlink oracle networks are run by security-reviewed node operators run by leading blockchain DevOps, leading to highly reliable oracle services.
- Decentralized Infrastructure — Chainlink oracle networks aggregate data from numerous secure node operators and premium data sources, ensuring highly available, accurate, and tamperproof data and data delivery to Multiplier’s MCL.
- Transparent Processes — Chainlink oracle networks are supported by reputation systems and transparent visualizations, allowing any user to independently verify the security and accuracy of the price oracles/networks used in our lending operations.
We look forward to leveraging multiple Chainlink Price Feeds to bring new lending markets to BSC, as well as future integrations with Chainlink to quickly expand our support for additional collateral types.
“We selected Chainlink because of its battle-tested and robust price feeds, already proven to secure billions of dollars in value for various DeFi protocols. The technical integration was straightforward and easy-to-implement, resulting in our loan issuance and liquidation mechanism being highly secure, reliable, and always representative of global market prices.”
– Multiplier CTO, YewNan
What is Multi-Chain Lend (MCL)?
MCL by Multiplier Finance is an algorithmic money market system designed to provide secure and unique lending and borrowing opportunities on Binance Smart Chain. Depositors earn interest by providing liquidity to lending pools, while borrowers may obtain loans from these same pools. The protocol designs are architected and forked based on Aave, with additional revenue sharing components.
Users who stake bMXX in the governance module will receive 20% of protocol revenue (loan origination and flash loan fees), as well as a share of 400 bMXX distributed daily. Users who deposit and provide liquidity will enjoy 70% of protocol revenue.
As it stands, MCL will be the first to support flash loans on BSC, which allows users to borrow instantly and easily; no collateral required.
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.