Dolomite Upgrades to Chainlink Price Feeds to Help Secure Liquid Restaking Token Collateral Calculations

We’re excited to announce that Dolomite — an advanced lending and borrowing protocol — has upgraded from RedStone to Chainlink Price Feeds on Arbitrum mainnet for PT-eETH and PT-ezETH. By upgrading to the industry-leading decentralized computing platform, Dolomite has access to high-quality, tamper-proof price feeds needed to help secure collateral calculations for PT-eETH and PT-ezETH. This will provide our users with stronger assurances that collateral calculations for PT-eETH and PT-ezETH are supported by high-quality market data.

Our integration involves the use of the following Chainlink Price Feeds: ETH/USD, ezETH/ETH, and weETH/ETH. We chose Chainlink as our preferred oracle solution because its infrastructure is seamless to integrate and time-tested in production. As the most widely adopted price data standard in Web3, 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 money market protocol and DEX that offers broad token support and capital efficiency with its virtual liquidity system. Dolomite combines the strengths of a DEX and a lending protocol into a capital-efficient and modular protocol capable of offering overcollateralized loans, margin trading, spot trading, and other financial instruments.

In order to help secure collateral calculations for PT-eETH and PT-ezETH, 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.

After initially using RedStone, we decided to quickly upgrade to 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 Price Feeds have an unparalleled track record in DeFi as the industry standard for secure and reliable market data. We’re excited to upgrade to Chainlink infrastructure to help secure collateral calculations for PT-eETH and PT-ezETH.” — Corey Caplan, Co-founder of Dolomite

About Chainlink

Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $11.5 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.