Making an announcement regarding the integration of Chainlink Price Feeds, Phuture has onboarded 33 Chainlink Price Feeds for the launch of its mainnet. There are plans to add more feeds in the future. For now, the well-established price feeds from the house of Chainlink will be utilized by Phuture. It is an important development as it brings more reliability and credibility to the entire ecosystem of indices. Besides, this integration will also lend more reliability to the process of assigning net value to any index.
The primary business model of Phuture revolves around indices. Users can invest in indices and there is also an option of minting them. The process of minting indices entails Phuture to come up with an accurate makeup so that the index shares can be allocated to the user. As Chainlink Price Feeds are the most accurate and reliable source of price field available in the industry today, these will be used by Phuture to modulate the prices which subsequently become a basis for the swooping process.
The reason behind the adoption of Chainlink price feeds is clear. As the Phuture platform uses the prices on the AMMs in order to execute the process of minting indices, there is always the suspicion of price manipulation. Lowering the price will lead to the allocation of more shares, keeping the process completely transparent. Using the deviation-based price feeds technology of Chainlink is the perfect solution to overcome this issue.
Another characteristic that makes the Chainlink data absolutely fit for the cause is its sourcing technology. Rather than based on a single source, Chainlink price data is based on multiple feeds that take care of abnormal deviation in prices. It will be interesting to witness how this integration will pan out in terms of bringing more transparency to the domain and more importantly, adding more users to the client list of Phuture.