Leading lending platform Alpaca Finance has announced that it is integrating Chainlink Price Feeds to help in securing its growing $1.2 billion TVL. Chainlink integration allows DeFi platforms to secure their assets and allows developers to create advanced smart contracts to generate more user value.
Chainlink already secures billions of Dollars across DeFi and will serve as Alpaca Finance’s primary oracle solution after integration. The integration will help users earn high APY with the highest possible security.
High-Quality Price Data
Chainlink Price Feeds are known for supplying high-quality data, along with several layers of decentralization. This protects user assets from flash crashes, exchange downtime, and flash loans. With Chainlink Price Feeds becoming the primary oracle solution, and with already existing in-house security program Oracle Guard and security audits, Alpaca Finance implements multiple layers of security to secure assets from any potential threats.
The initial integration will include several trading pairs such as CAKE-BNB, BTCB-BNB, ETH-BNB, USDT-BUSD, BNB-BUSD, DOT-BNB, LINK-BNB, YFI-BNB, VAI-BNB, USDC-BUSD, DAI-BUSD, BTCB-BUSD, BNB-USDT, CAKE-BUSD, and ETH-BUSD.
Capital Efficient Lending
Alpaca Finance offers the most capital-efficient borrowing and lending facilities through the use of platform-controlled under-collateralized loans. It offers flexibility in customization to individuals and institutions thanks to its innovative suite of products that range from single asset leveraged yield farming to two-sided borrowing.
Users can also employ various strategies to maximize their asset value, while lenders can earn passive income by providing liquidity to borrowers. Currently, alpaca Finance incorporates several yield and staking options to match a user’s risk preference.
Partnering With Chainlink
For Alpaca Finance, Chainlink was the best option when it came to securing its user funds and assets. It offers several options and features that help secure Alpaca Finance’s on-chain functions.
- High-quality data - Chainlink sources data from several premium aggregators, price data is aggregated from hundreds of exchanges, and its data-aggregation model ensures the generation of accurate global market prices that are resistant to manipulation.
- Secure node operators - Chainlink is secured by independent, audited, and Sybil-resistant oracle nodes. These nodes are run by leading data providers, DevOps teams, and traditional enterprises.
- Decentralized - The Chainlink Price Feeds are decentralized at all levels (data source, oracle node, and oracle network). This generates significantly more robust protection against problems such as tampering by any party of any downtime.
- Reputation - Chainlink’s on-chain monitoring tools and a robust reputation framework enable users to verify the performance of both node operators and oracle networks.
Importance Of The Integration
Alpaca Finance’s Head of Business Development, James Strudwick, stressed the importance of the integration to Alpaca Finance, stating.
“Our integration with Chainlink was crucial to maintaining Alpaca’s values of transparency, security, and reliability; Chainlink Price Feeds provide our smart contracts with price data that has extensive market coverage and oracle infrastructure that’s battle-hardened in production, enhancing the security of user funds deposited on the platform. Additionally, Chainlink is blockchain-agnostic, supporting our scaling ambitions while reducing the load on our development team — empowering us to focus on creating more advanced yield farming strategies for our alpacas.”
The Industry Standard Oracle Network
Chainlink has set the standard for powering hybrid smart contracts. It provides developers with a collection of high-quality data sources along with off-chain computations, helping expand the capabilities of smart contracts. Currently, Chainlink secures billions in value for smart contracts across DeFi and industries such as gaming and insurance.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.