Gro Integrates Industry-Leading Oracle Solution Chainlink for Enhanced Price Accuracy
We’re excited to announce that Gro has integrated Chainlink, the industry-leading blockchain oracle solution. Specifically, Gro is using Chainlink Price Feeds to help protect users from oracle manipulation.
ChainLink is a decentralized oracle network that connects smart contract applications to real-world data and off-chain computation. Chainlink features multiple levels of decentralization to eliminate single points of failure for unparalleled uptime guarantees. As the blockchain industry’s preferred oracle solution, Chainlink already secures $75B+ for various decentralized applications across multiple blockchains.
Gro protocol is a stablecoin yield aggregator that makes accessing DeFi yields easy to everyone through risk-tranching and automated leveraged yield farming. The first two products built on Gro protocol are the Ethereum-based PWRD stablecoin, featuring deposit protection and yield, and a novel Vault enabling leveraged stablecoin yields. Gro has also launched Labs on Avalanche to automate leveraged yield farming and make it more accessible to all DeFi users.
Integration of Chainlink Price Feeds on Ethereum
Gro uses Curve to price assets when users deposit or withdraw from PWRD and Vault. When users transact, they convert stablecoins such as USDC, USDT, or DAI into PWRD or Vault tokens at the current spot price in Curve. To ensure that the spot price hasn’t been manipulated, we compare it with the price that was cached during the last harvest.
However, this begs the question — how do we know if the cached value is not itself manipulated? This is where Chainlink Price Feeds come in. Gro uses Chainlink Price Feeds to check whether the Curve exchange rate at harvest is within a reasonable price corridor. This enables Gro to determine if that value should be cached and used as a point of comparison in subsequent deposits or withdrawals. In other words, Chainlink Price Feeds help Gro safeguard our defense against data manipulation attacks and single points of failure to help ensure Gro references globally accurate and fair market rates.
Integration of Chainlink Price Feeds on Avalanche
Gro also uses Chainlink Price Feeds in Labs, our latest product on Avalanche. Labs provides automated and leveraged yield farming. Users deposit stablecoins to Gro, which borrows AVAX and then does liquidity provision on Trader Joe with the two assets. When closing a leveraged position, any excess AVAX or JOE will be sold back into stablecoins for yield.
Here we use Chainlink Price Feeds to check if the spot prices are within an acceptable range. By doing so, Labs is able to better manage slippage and send accurate yields back to users.
“Going forward, Gro will continue to use Chainlink as our preferred oracle solution beyond these use cases. We are excited to explore further integrations of Chainlink decentralized services to unlock more functionality and enhance user experience–stay tuned for what comes next!” stated Hannes Graah, the founder of Gro.
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.
Gro is a decentralized finance (DeFi) protocol offering leveraged and protected stablecoin yields through risk tranching. Its products include PWRD, Vault and Labs. Gro protocol uses an automated portfolio of stablecoin yield strategies to balance yield against risk. PWRD users are protected from loss by Vault users, who take a leveraged share of protocol returns from PWRD. As Gro focuses almost entirely on stablecoins, market price volatility is minimized, even in higher risk products.
Gro is backed by investors including Galaxy Digital, Framework Ventures, Variant Fund, Three Arrows Capital, and many more. To learn more, visit the Gro website, dApp, documentation, Twitter, or Medium. Join our community on Discord or Telegram to discover how you can help develop Gro!