Chainlink’s price oracles power derivatives and crypto-finance products running on new DeFi exchange

Chainlink’s price oracles power derivatives and crypto-finance products running on new DeFi exchange

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.

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.

Chainlink technical flow of integration
(Source: Opium Blog) 

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.

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

5 Jun at 11:32 pm UTC

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