CompliFi Integrates Chainlink Price Feeds to Provide Accurate Pricing for On-chain Derivatives
We’re excited to officially announce that CompliFi V2— a truly decentralized derivatives protocol— integrates Chainlink Price Feeds.
By integrating the industry-leading decentralized oracle network, CompliFi can offer precise & fair pricing of derivative products such as Perpetual x5 Leveraged Tokens & Covered Call Options.
The integration currently involves the use of the following Chainlink Price Feeds:
CompliF has chosen Chainlink as its oracle solution because its price feeds & infrastructure has been battle-tested for years. Chainlink already supports the DeFi protocols listed above in USD pairs securing billions of USD value.
CompliFi leverages Chainlink throughout the lifecycle of all derivatives:
- Oracles are used to measure starting prices of underlying assets and set key derivative parameters, such as strike prices for options and reference prices for x5 leveraged tokens
- Current asset prices underpin every derivative trade, allowing CompliFi to value its instruments and algorithmically manage risk
- For settlement, CompliFi relies on oracles to determine the state of the market at the point in time when derivatives expired
CompliFi users can be sure that with Chainlink, all the trading & settlement activities have best-in-class protection from flash crashes or data manipulation.
Leveraging Chainlink Price Feeds to Help Power CompliFi Protocol and Beyond
CompliFi aspires to become the leading protocol for decentralized derivatives by offering a unique environment where traders don’t experience margin calls, liquidations or defaults.
CompliFi V1 went live in March 2021. It has a proven track record of traders utilizing it for various trading strategies and liquidity providers earning high returns from trading fees & premiums.
The newest version — CompliFi V2 — is also powered by Chainlink. The protocol is now home to 7 assets for users to trade using our sophisticated on-chain derivatives for Covered Call Options & Perpetual x5 Leveraged Tokens.
The core community members work towards a broader suite of on-chain financial products for users, which Chainlink oracles will also help power in the near future.
Liquidity providers can now stake USDC in a single pool that powers all the Perpetual x5 Leveraged Tokens. As of today, there are three pools for Covered Call Options powered by native ERC-20 tokens: MATIC, WBTC and WETH with more additions on the horizon.
Liquidity providers earn raw, unsubsidized fees & premiums. The historical APY shows LPs at CompliFi are making way more than they payout.
After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features such as:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
- Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
CompliFi is a decentralized derivatives protocol with unique features where traders don’t experience margin calls, liquidations or defaults. Liquidity providers at CompliFi get to enjoy high APYs on their USDC stablecoins & ERC-20 tokens thanks to raw trading fees & premiums paid by traders.