DEFI FOR YOU COMPLETES INTEGRATION OF CHAINLINK PRICE FEEDS AND VRF
DeFi For You has completed an integration of Chainlink Price Feeds on Ethereum mainnet to support our crypto lending platform. With Chainlink Price Feeds, DeFi For You has the most secure, reliable, and accurate price oracles in the industry, leading to stronger guarantees that users are receiving fair market rates when loans are issued, managed, and liquidated. Our initial integration involves support from the following Chainlink Price Feeds: ADA/USD, ATOM/USD, BNB/USD, BTC/USD, DFY/USD, ETH/USD, and LINK/USD.
Additionally, DeFi For You has integrated Chainlink VRF to enable provably fair giveaways and contests. The successful integration of Chainlink VRF allows DeFi For You to seamlessly determine contest winners in an unbiased and unexploitable manner.
We selected Chainlink because they are the most time-tested oracle solution in the blockchain industry, already helping secure tens of billions of dollars for decentralized applications across various blockchains. Importantly, Chainlink Price Feeds are decentralized and supply price data with wide market coverage, hence why it’s been historically very reliable during unexpected events such as API downtime, flash crash outliers, and data manipulation attacks like flash loans. Moreover, Chainlink VRF is powered by open-source code and provides on-chain proof to prove the integrity of the random numbers it generates.
Why is the Chainlink Integration Important?
Lenders and borrowers on DeFi For You will need real-time price information for fair and secure calculations of their borrowing capacity and collateralization thresholds referenced during liquidations.
Borrowers: More Accurate Liquidation Threshold
Hypothetically, let’s say you take out a loan of 1,000 USDT. Your collateral is 4 BNB and your loan’s Liquidation Threshold is 80%. Based on these numbers, your collateral will be liquidated if its collective value falls below $1,250 USDT.
But what if the pricing data used is inaccurate by 2%? Your collateral could hit an actual value of $1,300 but be unfairly liquidated because the system inaccurately reports your collateral to be worth less than $1250. Obviously, this is a risk that we don’t want our borrowers to be subject to.
There are numerous problems with relying on single data sources, even if the pricing data is from aggregators, as it’s not necessarily 100% accurate at all times. On top of this, glitches sometimes happen and lags can occur during volatility. You may have seen a coin suddenly be worth substantially less than its real value, only to correct again seconds later. These glitches could risk your collateral being automatically transferred to the lender.
With price feeds from Chainlink, these errors are very unlikely to happen. Chainlink has the industry’s most accurate pricing data and a proven performance history securing high-value applications. Users can rest assured that their collateral is being treated fairly.
Lenders: More Accurate LTV
Lenders require the most accurate pricing data to manage their crypto lending business over the long term. With Chainlink Price Feeds, lenders on DeFi For You can set more accurate LTV (loan-to-value) ratios to help ensure they remain solvent at all times.
Lenders can also be more certain that they haven’t given borrowers a bad service by unknowingly being transferred unfairly liquidated collateral. This protects the lender’s reputation on DeFi For You for the long term and ensures a better experience for all parties involved.
The Benefits of Chainlink Price Feeds
The DeFi For You team explored various market data solutions, but Chainlink Price Feeds stood out for numerous reasons, including:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that are aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and suspicious volumes.
- 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 with a strong track record for reliability, even during high gas prices and extreme network congestion.
- 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 the oracle network.
- Transparency — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.
Hosting Provably Fair Giveaways With Chainlink VRF
In previous social media posts, we asked DeFi For You community members to guess which technology we would be integrating, and many of our community members correctly guessed that we were integrating Chainlink! Shortly, we will use Chainlink VRF to conduct a giveaway of a luxury holiday in Vietnam (worth $2,500) to one lucky person who correctly guessed that we were integrating Chainlink oracles. Each correct participant will be assigned a number and Chainlink VRF will randomly select the winner.
Chainlink VRF works by combining block data that is still unknown when the request is made with the oracle node’s pre-committed private key to generate both a random number and a cryptographic proof. The DeFi For You smart contract will only accept the random number input if it has a valid cryptographic proof, and the cryptographic proof can only be generated if the VRF process is tamper-proof. This helps provide users with automated and publicly verifiable proof directly on-chain that each giveaway using Chainlink VRF for randomness is provably fair and cannot be tampered with or predicted by the oracle, outside entities, or the DeFi For You team.
As our community continues to grow, we will conduct more giveaways in the future — all powered by Chainlink VRF!
Towards a More Transparent World
The high-quality data of Chainlink combined with it’s various secure off-chain computations are helping the blockchain industry create a more transparent world governed by cryptographic truth. DeFi For You is very excited to integrate Chainlink decentralized services into our platform to provide users with a more reliable and fair lending and borrowing experience, as well as to host provably fair giveaways backed by cryptographic proofs.
This is only the start of our integrations of the Chainlink Network — expect more news to follow!
“Chainlink Price Feeds offer a new level of transparency and reliability in the DeFi For You platform, helping protect both lenders and borrowers from inaccurate pricing during periods of extreme volatility, network congestion, and various other unpredictable situations,” stated Adam Chaplin, CEO and Founder of DeFi For You. “We also look forward to using Chainlink VRF to fairly distribute prizes in giveaways, bringing a new element of fun to our global community.”
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
About DeFi For You
DeFi For You is a decentralized peer-to-peer crypto lending platform built on Binance Smart Chain that allows borrowers to use crypto assets, NFTs, and physical assets as collateral for DeFi loans. DeFi For You is partnered with a web of pawnbrokers in the UK who act as evaluators for physical assets and securely store and insure them, transferring an NFT to the asset’s owner so they can use it as collateral on DeFi For You.