To serve the purpose of issuing crypto loans to its users in an accurate, secure, and reliable manner, the leading decentralized finance (DeFi) platform DeFiner announced on August 26, 2020, to integrate the popular decentralized blockchain network Chainlink on its mainnet.
This integration of Chainlink would give DeFiner access to its Price Reference Data that DeFiner will use to set prices for the crypto or other digital assets stored in its DeFi savings account. Once the price is set for a digital asset, DeFiner can easily create liquidity pools that will help it in the liquidation of undercollateralized loans.
To begin with, what this integration means for DeFiner, we need to understand how DeFiner and Chainlink operate in the blockchain environment.
DeFiner is a non-custodial, peer-to-peer digital assets lending platform enabling its users to both lend digital assets via digital asset savings account and borrow crypto loans via a peer-to-peer lending marketplace. In either case, both lenders and borrowers get higher returns for leveraging their digital assets. Both scenarios involve the execution of the loans and payments through Ethereum smart contracts.
Chainlink is an open-source blockchain providing oracles to the DeFi applications. Most of the DeFi applications use price data provided by Chainlink on their mainnets because of their accuracy and decentralized nature.
DeFiner is hoping that the liquidity pools created using these price data will strengthen the belief of its DeFi savings account users in the fact that their assets are secure.
Now, let’s look at the core benefits of Chainlink price data for DeFi mainnets such as:
- Being accurate, secure, and decentralized
- Sourcing price data from multiple sources
- Providing real-time, tamper-proof on-chain price
According to Jason Wu, CEO of DeFiner, the integration will help DeFiner strengthen its smart contracts and expand its liquidity pools while offering its users a wide range of secure and decentralized digital assets.
The cryptocurrencies that will be benefitted with this integration include Ethereum, Tether, USD Coin, Basic Attention Token, DAI stablecoin, and 0x. Chainlink (LINK) is a decentralized oracle network that aims to connect smart contracts with data from the real world. To know more about LINK news, you can check our cryptocurrency news page to know the latest news, market price & predictions.