Polkalastic Will Integrate Chainlink Price Feeds to Secure The Industry’s First Elastic Finance Aggregator
In order to advance adoption in the growing Elastic Finance (EFi) space, Polkalastic is excited to announce that we will be integrating market-leading oracle network Chainlink to power an industry first EFi aggregator known as Polkalastic. By leveraging Chainlink’s widely used Price Feeds, we’re ensuring Polkalastic provides users with the highest quality price data, secured by decentralized oracle computation.
Our initial integration will use Chainlink’s tamper-proof oracles to securely reference high-quality asset prices and feed market capitalization data to our EFi aggregator. The EFi aggregator will track the leading elastic cryptocurrencies, seigniorage tokens, algorithmic stablecoins, cash systems, and will also grow to encompass future elastic assets. Integrating Chainlink’s decentralized oracles into Polkalastic also furthers our migration toward complete decentralization. Not only do Chainlink oracle networks prevent data manipulation attacks by achieving broad market coverage, but they also ensure that the critical data delivery mechanism underpinning Polkalastic’s aggregator is trust-minimized and resistant to any centralized points of failure.
Polkalastic’s Novel EFi Aggregator
Polkalastic offers exposure to the growing EFi space in a single, easy-to-own token (POLX) via a curated basket of elastic assets. The POLX token is designed to become a “set it and forget” approach to the rapidly evolving crypto sector of Elastic Finance. The token tracks our proprietary Polkalastic Aggregator (PA), which is composed of the most promising and technically interesting EFi projects. POLX is a capitalization-weighted product that captures the strength of the underlying market with some bespoke differences — the PA is weighted based on the value of community support measured by the number of stakers, as well as the market cap of the token, providing an indicator around community strength and sentiment that is not possible with more conventional products. Through this complete picture, we believe the PA truly captures the living, breathing pulse of this fast-moving space.
In addition to operating the aggregator, Polkalastic is a research, education, and data analysis organization that seeks to elucidate the often complex projects moving the sector forward. While this complexity is a natural by-product of innovation, our application dashboard aims to simplify adoption and access to information by surfacing critical market, user, and on-chain data related to the POLX token and PA. It is our hope that holders can make informed, timely decisions about their investments. As a result of extensive ideation and planning, we expect the POLX dashboard to represent a step forward in transparency and user confidence for all EFi projects. Here are some of the initial advancements of our MVP:
- Direct Staking — Instead of obfuscated geysers requiring costly LP positions, our users can directly stake tokens in our contracts, providing clarity around rewards, lowering the barrier to entry, and allowing for token usage within the protocol.
- Community-Weighted — PA extends beyond market capitalization to capture a more complex picture of a project’s place in the sector, instead determining the best performing projects according to multiple criteria. When staking in our contract, users will delegate their stake toward their chosen project, increasing the project’s weight is indexed, thereby capturing community sentiment.
- Decentralized Market — While Polkalastic is initially launching as a curated aggregator, it is moving quickly towards community-governance. In the way market dynamics play out across price, we hope to see similarly interesting dynamics bear out over time in weight and composition.
- Tiered Token Taxation — A dynamic and scalable “tax” is collected from every transfer and distributed to users supported through staking. This mechanism allows for a self-sustaining ecosystem that incentivizes meaningful participation.
- On-Chain and Market Analytics Dashboard — Our dashboard highlights relevant on-chain and market data in a useful way. Elastic and algorithmic currencies can be complex at a protocol level, and salient information needs to be distilled to attract a more confident and informed investor base.
- EFi Exposure in a Single Token — The PA will come to represent the most promising EFi projects in the space, from both a technical and community perspective. Holding the token leverages the wisdom of the crowd, allowing anyone to participate in the upside and growth of a burgeoning new asset class within the DeFi landscape.
Securing Elastic Finance With Chainlink Oracles
Oracles provide a core piece of infrastructure for blockchain applications by allowing them to bridge off-chain “real-world” data onto the blockchain. In seeking a provider for off-chain data, security becomes a serious concern, as external data feeding into blockchains can become a single point of failure for smart contract applications. We needed a proven oracle solution that could remove the murk surrounding elastic supply tokens, adapt as we evolve, and secure sensitive and rapidly changing price data to trigger the execution of smart contracts in a timely, reliable, and tamper-proof manner.
After reviewing various oracle solutions across the market, we realized that Chainlink’s decentralized oracles were the only viable oracle solution for Polkalastic. Chainlink Price Feeds fetch data from numerous premium data aggregators like BraveNewCoin, who source price data across centralized and decentralized exchanges, weight it by volume, and filter outliers. By aggregating and validating decentralized price data, Chainlink Price Feeds provide smart contracts with hyper-reliable off-chain data that they need to power a wide variety of applications.
Some of the unique advantages of Chainlink’s decentralized oracle network include:
- Secure Nodes — Chainlink nodes are run by leading blockchain DevOps and security teams, creating a decentralized network of highly performant Sybil-resistant oracles.
- Decentralized Infrastructure — Chainlink Price Feeds are decentralized at both the data source level and the oracle node level, resulting in highly reliable and tamper-proof on-chain data.
- Universal Connectivity — Anyone can use Chainlink’s permissionless, open-source framework to securely connect any API to any blockchain via External Adapters.
<Caption: The ETH/USD Chainlink Price Feed. Source: https://data.chain.link/>
The Polkalastic project believes we have only begun to scratch the surface of the types of novel applications that Chainlink oracles allow us to create. The Chainlink Network’s wide range of oracle services also enables us to explore additional integrations around:
- Custom Feeds — The PA derives a proprietary EFi Marketcap value from which the token peg is calculated. Much like a traditional index fund, this number will serve as an indicator used in broader market analytics and as a widely used reference point. This represents an opportunity and we believe that such a tool could be used in other protocols, analytics platforms, and applications.
- Custom Data Feeds — As our work with on-chain analytics related to elastic and algorithmic currencies continues, we hope to expand our integration with Chainlink to provide this cryptographically signed data to various oracle networks. As these protocols advance in complexity, we’d like this data to be available to builders in a decentralized fashion so they can continue to push the boundaries of DeFi innovation.
“The Chainlink Network has become the standard-bearer oracle solution for smart contracts, and its broad presence in DeFi and EFi is a testament to the network’s proven ability to power secure price feeds and oracle computation for the larger blockchain economy. Integrating Chainlink’s leading oracle network enables our PA to track elastic currencies in a hyper-reliable manner, making it an easy choice”, Founder of Polkalastic. “We believe that the experimentation and innovation happening now in EFi will be looked back upon as a critical juncture in the history of cryptocurrencies, with Polkalastic as a key stepping stone in the larger trajectory of EFi adoption.”
The Polkalastic (POLX) Aggregator is designed to track token performance within the ever-evolving Elastic Finance industry (EFi). Our aggregator will include elastic cryptocurrencies, seigniorage tokens, algorithmic stablecoins, cash systems and whatever comes next. Projects are weighted based on the value of community support measured by the number of stakers, as well as the market cap of the token. This novel mechanism allows us to capture both technical innovation and community strength. Like traditional indices, POLX will track projects with significant usage and demand as well as those that show a vibrant community and commitment to ongoing development.
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.