Chainlink’s price oracles power derivatives and crypto-finance products running on new DeFi exchange 🚨 This article is 5 years old...
Chainlink’s price oracles power derivatives and crypto-finance products running on new DeFi exchange
2 min read
Updated: Jun. 5, 2020 at 11:32 pm UTC
Photo by Markus Spiske on Unsplash
One year after launching its mainnet, Chainlink is forging ahead with partnerships and industry collaborations.
The project partnered with a decentralized exchange, the Opium Network, on June 3, fueling Chainlink’s narrative of building a fully-decentralized, verifiable network with high interoperability.
Verifiable Price Feeds
As per a release, Opium is integrating Chainlink’s price and data oracles to allow the faster listing of derivatives on the native platform, while ensuring accurate and tested pricing of assets.
Decentralized derivatives platform @Opium_Network is live on mainnet consuming #Chainlink Price Reference Data. Opium's founder stated, "The integration was effortless and fast, and will significantly reduce the time required to list new derivatives contracts."
— Chainlink – Official Channel (@chainlink) June 3, 2020
Opium’s protocol allows users to create, settle, and trade financial derivatives and other financial instruments on the Ethereum blockchain. The product is one of the many joining the ongoing push for DeFi-centric products this year.
Order matching, payouts, and creation of secondary markets are handled directly on Opium’s underlying blockchain. The firm states pricing data is continually procured from Chainlink aggregators using The Graph Protocol, with traders receiving accurate asset charts and prices.
Already live, Opium lists weekly futures contracts and options using the ETH/DAI oracle provided by Chainlink. A trial integration took place in May, with payouts “completed successfully.”
Andrey Belyakov, the founder of Opium Exchange, commented on Chainlink’s integration:
“We were very impressed by the decentralization and security of Chainlink’s oracle network, and it was a natural fit to integrate Chainlink’s price reference data directly with our exchange.”
For the uninitiated, Chainlink’s decentralized oracle network enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments, notes the firm’s official blog.
Over thirty price feeds, including cryptocurrencies, indices, and currencies, are supplied by the price oracles and used by a number of existing exchanges, DeFi applications, and crypto-finance products.
Oracles eliminate failure
Teaming up with a decentralized price oracle has its benefits. Sudden triggering of liquidations, the creation of advanced derivates, and the calculation of “strike” prices are some examples, with potential products capable of offering tokenized assets pegged to any real-world data feed.
Chainlink’s decentralized oracle network, unlike existing alternatives, obtain and validate data from various before triggering a smart contract is triggered, ensuring there’s no single point of failure.
1/ We're in the process of helping @bzxHQ solve this pricing data manipulation issue for the long-term by using our decentralized oracle network's price reference data; https://t.co/ylbngGisYO providing both a decentralized oracle mechanism and multiple quality data aggregators. https://t.co/O8WrGrcGlU
— Sergey Nazarov (@SergeyNazarov) February 18, 2020
For building decentralized, trustless trading tools and products, the use of apt infrastructure is both necessary and perhaps understated. Bitcoin- or crypto- denoted financial products are dime-a-dozen, but security flaws and vulnerable frameworks, such as that exposed in the MakerDAO attack in March, prove that creating a decentralized financial system is not simple.
Chainlink attempts to fill that gap. The 2015-founded company develops and provides “smart oracles,” allowing for the integration of highly auditable and secure connectivity between smart contract networks.
Chainlink Market Data
At the time of press 11:32 pm UTC on Jun. 5, 2020, Chainlink is ranked #14 by market cap and the price is down 1.06% over the past 24 hours. Chainlink has a market capitalization of $1.53 billion with a 24-hour trading volume of $298.78 million. Learn more about Chainlink ›
Crypto Market Summary
At the time of press 11:32 pm UTC on Jun. 5, 2020, the total crypto market is valued at at $274.7 billion with a 24-hour volume of $85.27 billion. Bitcoin dominance is currently at 64.79%. Learn more about the crypto market ›
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Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.