Flux Protocol Using Chainlink to Power its Multi-Chain Lending Operations: First Stop, Binance Smart Chain
We are happy to announce that Flux Protocol has integrated Chainlink Price Feeds live on the Binance Smart Chain (BSC) mainnet to power our multi-chain decentralized lending protocol. As the industry-leading decentralized oracle network, Chainlink oracles provide our lending markets with the most precise, tamper-proof, and highly reliable price reference data in the Web3 ecosystem, ensuring all loans are issued at fair market prices and the protocol remains fully collateralized at all times.
Flux Protocol is beginning by using Chainlink Price Feeds to determine valuations for the following assets: BTCB, ETH, BUSD, USDC, BUSD-T, DAI, and BNB. We can easily scale up our Chainlink integration to support more assets in the future as they become in demand by our community.
Flux Protocol is an automated lending and borrowing platform that offers scalable DeFi products across multiple blockchains, starting with Conflux Network, BSC and soon to follow with Huobi HECO Chain, and more. One of the foundational elements to our suite of DeFi products is a source of accurate, up-to-date, and tamper-proof price data that’s available directly on-chain.
This is important because the value of the assets deposited into the protocol as collateral determine a user’s borrowing capacity. Accurate prices are also used to calculate the borrower’s collateralization ratio, which is a metric that ensures a sufficient amount of collateral locked up to cover the outstanding loan. When the collateralization ratio drops below a certain threshold (e.g., 150%), a liquidation of the user’s collateral is triggered. In this way, price feeds are critical to maintaining the continued solvency of Flux Protocol.
After reviewing different oracle solutions, we found Chainlink to provide the most high-quality data and time-tested oracle security. Chainlink’s price feed oracle solution gives Flux Protocol several strong assurances around its oracle mechanism, such as:
- Accurate Data — Chainlink Price Feeds source data from numerous premium data aggregators like BraveNewCoin and Amberdata, which each pull price data from across all relevant exchanges and weight it by volume. This methodology ensures that price feeds are accurate and resistant to market manipulation attacks like those executed using flash loans.
- Reliable Nodes — Chainlink Price Feeds are secured by a large collection of independent, security-reviewed oracle node operators run by leading blockchain DevOps. Chainlink node operators are Sybil-resistant and have an extensive history of high uptime, even during periods of high gas costs and extreme network congestion.
- Decentralized Infrastructure — Chainlink Price Feeds are decentralized at both the data source and oracle node level to remove central points of failure in the sourcing and delivering of price data on-chain.
- Transparent Networks — Chainlink Price Feeds can be tracked in real-time via open-source visualizations and on-chain monitoring. This transparency around network performance enables users to verify they are receiving fair market values.
Caption: A visualization of the Chainlink BNB-USD Price Feed.
Chainlink is also blockchain agnostic and natively integrated with many of chains that Flux Protocol plans to support. Additionally, Chainlink Price Feeds are pre-built, plug-and-play oracle solutions, eliminating the need to develop and maintain an oracle solution. This opens up the Flux engineering team’s resources to focus on lending products! In the future, we will utilize Chainlink oracles to power our V2 leveraged lending platform.
“We’re thrilled to be using Chainlink to dictate how core lending operations on Flux Protocol are carried out, particularly because Chainlink is the robust price oracle solution and supplies the highest quality price data,” said Flux Protocol Founder Robin Peng. “Thanks to its blockchain-agnostic capabilities, Flux Protocol will be able to rely on Chainlink oracles for secure prices across BSC, Huobi, Conflux, and various other blockchains, ultimately accelerating our mission to be a truly multi-chain lending platform.”
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
About Flux Protocol
Flux Protocol is a borderless lending protocol, where low transaction fees and cross-chain interoperability are reality! Flux provides a lending mechanism to adjust the interest rates of crypto assets in an automatic and decentralized fashion, incentivizing liquidity in the cryptocurrency market!
Flux Protocol is set on a multi-chain journey by committing to launch on several blockchain protocols! To date, Flux Protocol has been launched on Conflux Network and Binance Smart Chain, and will deploy on Ethereum, Huobi ECO Chain, and OKExChain