Dolomite Integrates Chainlink Price Feeds to Help Secure Collateral Calculations
We’re excited to announce that Dolomite — an advanced margin trading, lending, borrowing, and hedging protocol — has integrated Chainlink Price Feeds on Arbitrum mainnet. By integrating the industry-leading decentralized oracle network, Dolomite has access to high-quality, tamper-proof price feeds needed to help secure collateral calculations in its margin lending protocol. This will provide our users with stronger assurances that the price data helping to secure collateral calculations and liquidations is reliable and secure.
Our initial integration involves the use of the ETH/USDC and USDC/USD Chainlink Price Feeds. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
Dolomite is a next-generation decentralized margin trading protocol and exchange. Its strength lies in its tech, allowing for high capital efficiency and the ability to support thousands of collateral assets, all wrapped up in a clean and easy-to-use interface. Dolomite’s capital efficiency means that users on Dolomite are able to double and even triple “dip” on their earnings, with their assets simultaneously earning margin lending interest, fees from providing liquidity to AMM pools, and yield farming interest.
For traders and borrowers on other platforms, users are only able to choose from a small set of assets as collateral when borrowing or opening margin positions, but Dolomite’s powerful tech is built to support thousands of collateral assets. This means users have much more freedom and can margin trade any listed asset against any other listed asset, and will be able to borrow against a very wide range of assets even including staked derivatives and interest-bearing tokens. These next-gen features are why Dolomite is a great venue for DeFi users to earn, hedge, and margin trade, and also why it’s been so vital to integrate Chainlink to support some of these features with accurate market data.
In order to help secure Dolomite’s lending, margin trading, and hedging features, we needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
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.
This is only the beginning of Dolomite’s integration of Chainlink services. Dolomite will be leveraging Chainlink Price Feeds as the platform grows and supports more assets, and Chainlink services are planned to support some more advanced features that will be coming in the future.
“Using Chainlink to secure Dolomite’s infrastructure was the only logical choice for helping to protect users and helping to maintain protocol solvency under all market conditions. The battle-tested infrastructure of Chainlink helps support the ambitious vision we have for Dolomite.” — Corey Caplan, Co-founder of Dolomite
About Chainlink
Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.
Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.
About Dolomite
Dolomite is a next-gen margin trading protocol offering high capital efficiency and the ability to support a much broader range of assets for use in margin trading and borrowing than is available elsewhere in DeFi. This means users can earn more and perform more powerful trading, borrowing, and hedging than ever before, all from a clean and easy-to-use interface.
Learn more about Dolomite at dolomite.io, read our docs at docs.dolomite.io, and join our community on Discord or follow us on Twitter to stay up to date.
