Prime Protocol Integrates Chainlink Price Feeds to Help Calculate Collateral Ratios
We’re excited to announce that Prime Protocol has integrated Chainlink Price Feeds on Mainnet! By integrating the industry-leading decentralized oracle network, Prime has access to high-quality, tamper-proof price feeds needed to help accurately calculate the value of collateral deposited to our platform. This will provide our users with stronger assurances that loans are fairly liquidated according to preset collateral ratios and that the protocol remains fully solvent at all times.
Our initial integration involves the use of Chainlink Price Feeds for the USD pairs on the following assets: AVAX, USDC, USDT, DAI, ETH, GLMR, and MATIC. 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.
Prime Protocol is a natively cross-chain prime brokerage protocol that enables users to borrow funds using collateral from various chains. Because the DeFi ecosystem is highly siloed on individual chains, liquidity remains limited. By connecting liquidity from across various chains via our prime brokerage platform, we’re able to break down the silos and create a cross-chain application that increases liquidity across the DeFi ecosystem. This enables our users to deposit assets from one chain and seamlessly access credit on another chain.
In order to help secure our prime brokerage protocol, 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 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.
“Accurately calculating a user’s liquidity in a timely manner is mission-critical for our protocol, which is why we integrated the hyper-reliable Chainlink Price Feeds. The security of the Chainlink Network is unparalleled and we look forward to integrating further Chainlink services in the future.” — Colton Conley, Founder of Prime Protocol
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 Prime Protocol
Prime Protocol is the first natively cross-chain prime brokerage. Prime offers borrowing backed by investors’ entire digital portfolios, regardless of asset type or blockchain. Collateral can be deposited on any supported chain, and loans will be made available on any supported chain. This model of interoperability is revolutionary in the DeFi space, where existing infrastructure only supports loans within single blockchain ecosystems, often only backed by a single collateral type.