Growth DeFi Integrates Chainlink Price Feeds to Support Lending, Liquidation and Other Services for MOR Stablecoin Exit
DeFi Growth integrated Chain link (LINK) the price feeds on the Binance smart channel (BSC) mainnet for their secured stablecoin lending protocol, MOR.
By integrating Chainlink’s decentralized Oracle network, the MOR protocol will be able to access the âhigh qualityâ and âtamper-proofâ price streams needed to âensure correct pricing of collateral assets and accurate processing of liquidations and loan ratiosâ , according to an update shared with CI.
This will provide their users with the âstrongâ assurance that when they deposit collateral on MOR, they receive accurate and reliable price data and âappropriateâ borrowed funds.
As mentioned in a Growth DeFi blog post, which harnesses the power of Decentralized Finance (DeFi) protocols to “maximize efficiency and capital value”, they chose Chainlink as their “go-to” Oracle solution because its infrastructure is âTransparent to integrate and tested over time in production.
As stated in the announcement, Chainlink secures major DeFi protocols that are responsible for billions of dollars in smart contract value, while being able to provide high level security and high availability “even in the midst of events. unexpected events, such as exchange downtime, flash failures, and data manipulation attacks via flash loans.
The update also mentioned that for a protocol with the âcomplexityâ of MOR, it makes sense to âoutsource an oracle solution with proven reliability in the DeFi landscapeâ.
As stated in the blog post:
âMOR is a leap forward in innovation for stablecoin borrowing, as it allows users to earn a return on their collateral while borrowing. This is achieved by allowing users to deposit yield-producing tokens into collateral, and achieves leveraged farm yield positions by exchanging the borrowed MOR for more collateral and repeating the borrowing process.
To get accurate pricing data for borrowers and assess liquidation levels, they needed access to new asset prices that are “delivered directly to the chain in a very reliable manner,” the announcement explained. . He also mentioned that fair market asset prices “should reflect a volume weighted average of all trading environments.” So they had to use an Oracle to get aggregate off-chain price data and “feed it on-chain for consumption by our application,” the blog notes.
After exploring different Oracle solutions, the Growth DeFi team decided to integrate Chainlink Price Feeds as they offer useful features such as:
- High quality data – Chainlink Price Feeds “source of data from numerous premium data aggregators, providing broad market coverage with price data aggregated from hundreds of trades, volume weighted and cleaned of outliers and trades washing â. Chainlink’s data aggregation model “generates accurate world market prices that are inherently resistant to inaccuracies or manipulation of a single or a small set of exchanges.”
- Secure node operators – Chainlink price feeds are “secured by independent Oracle nodes, security reviewed and resistant to Sybil, managed by leading DevOps blockchain teams, data providers and traditional businesses.” Chainlink nodes have “a solid reputation for reliability, even during high gas prices and infrastructure failures.”
- Decentralized network – Chainlink price feeds “are decentralized at the data source, Oracle node and Oracle network level, generating strong protections against downtime and tampering by the data provider or the Oracle network.”
- Reputation system – Chainlink “provides a robust reputation framework and a set of 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 said they were âexcited about the opportunities for further integration with Chainlink and their technology in the futureâ.
This may include adding new price streams as they continue to expand available collateral assets, as well as expanding MOR to other chains and ‘potential integration of Growth DeFi projects. with the Chainlink Keeper network â.
As stated in the announcement, Growth DeFi is a âdecentralizedâ ecosystem that focuses on capital efficiency and âmaximizes returns through a variety of productsâ.
The objective is “to increase the value of the token holder while maintaining the best returns and products on the market”. Growth DeFi is a multi-chain ecosystem, “with a unique tokenomic to ensure maximum long-term value”.