Growth DeFi has integrated Chainlink (LINK) price feeds on the Binance Smart Chain (BSC) mainnet for their collateralized stablecoin lending protocol, MOR.
By integrating Chainlink’s decentralized Oracle network, the MOR protocol will be able to gain access to “high-quality” and “tamper-proof” price feeds required to “ensure correct pricing of collateral assets and accurate processing of liquidations and lending ratios,” according to an update shared with CI.
This will offer their users with “strong” assurances that when depositing collateral on MOR, they’re receiving accurate and reliable price data and “appropriate” borrowed funds.
As mentioned in a blog post by Growth DeFi, which leverages the power of decentralized finance (DeFi) protocols to “maximize capital efficiency and value,” they chose Chainlink as their “go-to” Oracle solution because its infrastructure is “seamless to integrate and time-tested in production.”
As noted in the announcement, Chainlink secures major DeFi protocols that are responsible for billions of dollars in smart contract value, while being able to ensure a high-level security and high availability “even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.”
The update also mentioned that for a protocol with the “complexity” of MOR, it makes sense to “entrust an oracle solution with time-tested reliability across the DeFi landscape.”
As stated in the blog post:
“MOR is a leap forward in innovation for stablecoin borrowing, as it enables users to earn yield on their collateral while borrowing. This is achieved by allowing users to deposit yield-earning tokens as collateral, and enables leveraged yield-farming positions to be achieved by exchanging borrowed MOR for more collateral and repeating the borrowing process.”
To secure accurate price data for borrowers and to assess liquidation levels, they required access to fresh asset prices that are “supplied directly on-chain in a highly reliable manner,” the announcement explained. It also mentioned that fair market asset prices “should reflect a volume-weighted average from all trading environments.” So, they needed to use an Oracle to obtain aggregated price data off-chain and “deliver it on-chain to be consumed by our application,” the blog post noted.
After exploring different Oracle solutions, the team at Growth DeFi decided to integrate Chainlink Price Feeds because they offer useful features like:
- High-Quality Data — Chainlink Price Feeds “source data from numerous premium data aggregators, ensuring broad market coverage through price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading.” Chainlink’s data aggregation model “generates accurate global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.”
- Secure Node Operators — Chainlink Price Feeds are “secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises.” Chainlink nodes have “a strong track record of reliability, even during high gas prices and infrastructure outages.”
- Decentralized Network — Chainlink Price Feeds “are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.”
- Reputation System — Chainlink “provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.”
The DeFi Growth team noted that they’re “excited about the opportunities to further integrate with Chainlink and their technology in the future.”
This may include adding new price feeds as they continue to expand the available collateral assets, as well as the expansion of MOR to other chains, and “potential integration of Growth DeFi projects with the Chainlink Keeper Network.”
As noted in the announcement, Growth DeFi is a “decentralized” ecosystem that focuses on capital efficiency and “maximizing returns through a variety of products.”
The goal is “to increase token holder value whilst maintaining the best yields and products in the market.” Growth DeFi is a multi-chain ecosystem, “with unique tokenomics to ensure maximum value over the long term.”