In an important announcement, Venus has communicated that it has made full upgradation of its oracle mechanism to the Chainlink. This completion of the process will ensure fair market prices for price feeds on Venus and bring more transparency and authenticity to its operations, including the liquidation and loan issuance processes.
Chainlink is one of the most trusted names in the decentralized oracle network segment. With more than and $3.5 billion of total value locked (TVL), the ecosystem of Venus will be greatly benefited from this integration. Another important aspect of this collaboration is that as Chainlink is already running on the Binance Smart Chain (BSC), this integration will be completed without any complexity and unnecessary time delay. This will also result in timely and cost-effective price updates for the stakeholders involved in the ecosystem of decentralized finance and stablecoins.
Venus is built on BSC and is increasingly finding favor with potential investors and lenders nowadays. The platform’s popularity is rising with each passing day, thanks to its distinctive feature that allows lenders to gain access to the interest income by providing liquidity on a range of digital assets. The added utility of the platform is that a redeemable LP is issued to the liquidity provider, which can be used as a hedge against the lending process.
This new integration is sure to further Venus’s popularity and help all the relevant stakeholders in the ecosystem to have access to precise and up-to-date information on the prices of digital assets. Due to this integration, it is now possible to accurately calculate the overall collateral value lent to a borrower. This, in turn, will help to estimate the precise value of loan liquidation and loan issuance.
For example, when a new loan request is processed on the platform, Venus needs to determine the collateral value to determine the size of the loan that can be issued to the borrower. By upgrading its pricing oracle to Chainlink, Venus will get access to accurate and up-to-date price feeds to keep on implementing its business model successfully in the future.