Reflexer Integrates Chainlink ETH/USD Oracle to Support Mainnet Launch of RAI
We’re excited to announce that as part of our mainnet launch of RAI, Reflexer has integrated Chainlink’s widely used ETH/USD Price Feed! This Chainlink-powered decentralized oracle provides a consistently up-to-date, on-chain price feed regarding the current ETH/USD price, which the RAI smart contracts can fetch in a single call and thus update the collaralization ratios of all positions in the system. By doing so, the protocol can detect when a position is underwater as well as limit the amount of RAI that someone can mint against their ETH.
For those new to Reflexer, RAI is a non-pegged, stable asset that is solely collateralized by ETH. It is designed to dampen ETH’s price moves and thus provide a more “stable” alternative to Ether as DeFi collateral. The motivation for building RAI is to offer a crypto native unit of account to the DeFi industry. For more information on what makes RAI tick, refer to our documentation.
We selected Chainlink as our go-to oracle solution because it maintains high data quality in a secure and reliable manner, particularly through decentralized infrastructure, premium data aggregators and secure node operators. Of particular importance, Chainlink Price Feeds have extensive volume adjusted market coverage thanks to sourcing data from a collection of data aggregators, which each pull price data from across all trading environments, weight it by volume, and remove outliers. This mitigates concerns around exchange downtime, exchange inaccuracies, and data manipulation attacks, such as those carried out through flash loans.
By leveraging Chainlink’s decentralized price oracles, RAI users can feel confident in the prices that RAI’s minting and liquidation mechanisms reference. This is key to maintaining the protocol’s stability, solvency, and fairness.
Integrating Chainlink was a quick and simple process, allowing us to focus on developing RAI and getting it to market, especially at a time when it’s most needed. Chainlink’s dedication to security, reliability and data quality provides strong guarantees that RAI will function exactly as it’s intended.
We aim to continue working with Chainlink to support additional markets in the future, bringing new forms of stable assets to DeFi.
About Chainlink
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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