Opium Protocol the First to Consume Chainlink’s YFI Price Feed on Mainnet
Chainlink and Opium have collaborated on a reliable price feed for the YFI/ETH token pair, bringing the first fully decentralized YFI derivative product to the DeFi market.
At Opium Protocol, we are focussed on bringing professional derivatives to DeFi as we believe it is a crucial instrument for efficient markets. It also allows for speculating on assets that are either unreleased or highly inaccessible.
When we first read about yearn.finance’s YFI token distribution mechanism, we realized it was the perfect use-case for a derivative. The YFI token is a governance token built by Andre Cronje in July 2020 that could only be earned by using yield aggregating tokens on yEarn. This unique token distribution scheme with no premine caused a major buzz within the DeFi community, which — combined with minimal selling pressure — caused the token’s price to skyrocket. Especially in the first days upon release, the token was nearly unobtainable except for yield farmers.
Such illiquid and inaccessible markets are a great use-case for derivatives since it allows for speculation and hedging of risks without actually owning the underlying asset.
The Need for a Trustworthy Price Oracle
Configuring a decentralized derivative contract on Opium Protocol is easy: by combining Chainlink oracles with a derivative recipe, virtually any type of financial derivative can be created.
Earlier this year we announced an integration with Chainlink’s market-leading decentralized oracle network. Since then, we have been consuming Chainlink’s price feeds for our derivative contracts on Opium Exchange.
We approached Chainlink with the idea of launching a YFI derivative and the Chainlink team was eager to collaborate on a trustworthy price feed. They launched a reliable, decentralized, and stable price feed within a matter of days and it is currently being consumed by all YFI derivative tickers listed on Opium Exchange.
Through Chainlink, we were able to quickly launch a fully decentralized YFI derivatives product to cater to the growing demand of the DeFi community. We plan to keep supporting the DeFi community and working with Chainlink to continually scale to support more derivative products in the future.
Opium is a universal and robust DeFi protocol that allows for creating, settling, and trading decentralized derivatives. Use our products today to speculate on opportunities inside and outside of DeFi, or hedge yourself against trading risks.
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If you’re a developer and want to quickly get your application connected to Chainlink Price Reference Data, visit the developer documentation and join the technical discussion in Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
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