UNION, the DeFi protocol for protection, has recently announced the Chainlink integration at Mainnet for the estimation of the parameters of pricing and risks for the solvency capital requirement (SCR), the minimum capital requirement (MCR), and collateral optimization product (C-OP) protection pools. By channelizing data through Chainlink, the decentralized Oracle network empowers the UNION users to be assured of the precise evaluation of the coverage risks and the secure maintenance of the solvency of the financial pools.
The Chainlink Price Feeds that shall be integrated by UNION are mentioned below:
- ETH/USD
- USDC/USD
- DAI/USD
- BTC/USD
These decentralized price oracles shall be referenced by the smart contracts of the UNION during the estimation of MCR and SCR. By relying on the high-quality price data of Chainlink, the bundled protection products of UNION will be able to furnish every user with smooth, secure, and reliable methods of hedging the latent risks of DeFi.
The technology platform of UNION is renowned for providing every DeFi user with bundled protection that features multiple layers of coverage separated underwriter exposure that includes smart contract risk, Layer-1 risk, transaction completion risk, and exposure risk. UNION is entering into a partnership with Chainlink to employ its decentralized Oracle network to provide the necessary data reliably and securely to the system for the innovative C-OP’s effective pricing and managing the risks associated with the UNION’s protection pools. The data also contributes to maintaining the thresholds of pool liquidity through the SCR and MCR ratios. C-OP is also responsible for issuing payouts in which the liquidity is obtained from the monetary pools by optimizing the protection writers’ leverages. Consequently, both the risks and rewards get shared among the liquidity providers (underwriters).