SynLev Integrates Chainlink Price Feeds on Mainnet to Power its Leveraged Synthetic Asset Platform
Integrating Chainlink marks a major milestone in SynLev’s mission to become the industry standard for providing decentralized, trustless, and non-KYC gated leveraged assets.
Today, we are proud to announce our live mainnet integration with Chainlink, the market-leading oracle solution for blockchains and DeFi, as our chosen oracle for feeding price data into the SynLev ecosystem. More specifically, SynLev assets will access data from the widely used Chainlink Price Feeds to calculate the value of leveraged assets so they can be reliably traded and settled.
SynLev is a group of synthetic leveraged asset pairs built and tokenized on Ethereum. The goal of SynLev is to provide decentralized, trustless, and non-KYC gated leveraged assets that behave similarly to traditional leveraged ETFs. The initial integration will begin by leveraging the ETH/USD Price Feed of Chainlink, before then expanding our support to the Chainlink BTC/USD, XAU/USD, and FTSE/GBP Price feeds. These Price Feeds are at the core of the SynLev platform, as they determine the underlying value of the tokens, ensuring that their value aligns with the aggregated, volume-adjusted price discovery happening throughout the market.
The Importance of Oracles and Why SynLev Selected Chainlink
Chainlink oracles solve two inherent shortcomings of blockchains: connectivity to off-chain data and the security/reliability of that data to trigger high value contracts.
Firstly, blockchains are unable to access off-chain data as a built-in functionality, as there is no way for a blockchain to call an external API and import that data on-chain. The solution to this problem is a blockchain oracle: an external entity that retrieves off-chain data on behalf of the smart contract and stores it on the blockchain so it can be used to execute on-chain logic. As such, oracles act as a bridge between the two worlds for facilitating data transfer.
Secondly, if a blockchain oracle is centralized, we have removed the entire purpose of a blockchain, which is tamperproof execution of transactions. Centralized oracles can’t be an acceptable solution as they represent a single point of failure, which could be corrupted or experience downtime, leading to a “garbage in, garbage out” scenario that puts at risk the proper functioning of SynLev assets. This is why we chose Chainlink as it provides time-tested, decentralized oracle networks that we consider to be the industry standard across DeFi. Chainlink Price Feed oracles currently secure over $4 Billion USD on mainnet for many leading DeFi projects. Some of the main reasons these Price Feeds are counted on to secure critical smart contract functions include their use of high-quality data from off-chain data aggregators, decentralized oracle infrastructure at both the oracle node and data source level, security reviewed oracle nodes for Sybil resistance protection, and transparent oracle networks that users can independently monitor in real-time as being fair and accurate.
It’s for these reasons and more that Chainlink is consistently selected to provide highly secure and reliable oracles to leading DeFi applications like Synthetix, Aave, and Kyber Network; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.
It is our policy at SynLev that we exclusively utilize decentralized trusted oracles aggregated by the Chainlink Network in order to access essential information such as price data without sacrificing decentralization or security.
“SynLev’s foundation is reliant on properly functioning oracles. Chainlink’s proven price oracles ensure our synthetic asset pairs are stable and reliable, allowing our users to utilize decentralized leveraged financial products with strong assurances that they will function as intended.” -Carl a.k.a. Icarus, Founder of SynLev.
How Does it Work?
SynLev assets access price data from the Chainlink Price Feeds in order to calculate their leveraged asset prices. The assets are deployed in symmetrical pairs, one side of the pair acting as the “bull” token and the other side as the “bear” token. Both pairs react in an opposite and proportionate manner based on the underlying asset’s price movement: the bull token with the price and the bear token against it.
The first asset that’s going to be deployed on SynLev is 3X ETH/USD BULL/BEAR tokens, with price data supplied by the Chainlink ETH/USD Price Feed . We plan to continue launching more assets based on the Chainlink price feeds and with different leverage levels, such as Bitcoin (BTC/USD), Gold (XAU/USD), and the FTSE index (FTSE/GBP).
SynLev is a group of synthetic leveraged asset pairs built and tokenized on Ethereum using Price Feed data from Chainlink oracles. SynLev assets function similarly to leveraged ETFs. The goal of SynLev is to provide decentralized, trustless, and non-KYC gated leveraged assets.
Join the official SynLev Telegram group chat to participate in the discussion and follow us on Twitter for the latest updates. You can also bookmark our official SynLev website to stay up to date.
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. To learn more, visit chain.link and follow @chainlink on Twitter.
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