Sandbank Now Powering Financial Products on its Hybrid-DeFi Platform Using Chainlink Oracles.
We are pleased to announce that Sandbank is using Chainlink’s market-leading decentralized oracle networks for Price Reference data to bring transparent and more accurate on-chain prices to digital assets used in investment and credit line products. The first three Chainlink Price Reference Feeds we are using are live on the Ethereum mainnet for ETH/USDT, BTC/USDT, and USDT/USD.
We use these price feeds to perform hourly updates to the value of Sandbank users’ interest rewards on investments, margin call rates for crypto loans, and exchange rates in instant coin swap. Because Chainlink’s price feeds are decentralized, pull from high-quality data sources, and exist on-chain to publically monitor, our customers receive even greater guarantees that they are always getting the going volume-adjusted market rate for financial products without any fear of internal or external manipulation.
Understanding Sandbank
Sandbank is a digital asset banking platform where users can receive interest rewards on their crypto-asset deposit. Sandbank, just as traditional banks do, utilizes the funds from retail investors to loan them out to institutions that need instant liquidity in the form of digital assets. We then share the majority of the interest income received from these institutions to the retail customers as interest rewards, providing curated financial services that are not available through traditional financial institutions.
Sandbank now offers 4% interest rates on bitcoin (BTC) and ether (ETH), and 9% on USDT stablecoin deposits. The interest earned gets deposited into customer accounts every hour.
Sandbank instant credit line, on the other hand, enables borrowers to take on a loan with the highest LTV in the market — 70%, meaning one can get $700 worth of USDT with implementing $1,000 worth of BTC guarantee or collateral. Borrowers can utilize this leverage for higher-value trades, such as margin trading. This allows customer’s crypto holdings to go out and seek extra profit, instead of simply holding them in a non-interest bearing wallet until the price increases.
How Sandbank Leverages Chainlink to Enhance its Financial Products
As a crypto investor, one of the key advantages of investing in Sandbank is the hourly interest reward. Due to receiving interest income every hour on their digital asset deposit, investors can watch their assets grow more dynamically and perform a more flexible investment strategy over other platforms which give out interest-only once a day or once a week.
Therefore, updating accurate price quotes every hour is critical to managing risk and maintaining correct interest rate calculations in the face of price volatility. For this, we need a secure and reliable price feed for all three pairs — ETH/USDT, BTC/USDT, and USDT/USD. Chainlink’s Price Reference Data oracles will provide real-time exchange rates on all three assets to calculate variable interest rates.
After reviewing several solutions in the market, Chainlink was a clear choice because of its proven track record, highly accurate data, and secure and reliable network architecture for updating price feeds. Chainlink’s price reference data currently secure over a billion dollars in USD value for many across various platforms live in production. Their price data is sourced from numerous high-quality data aggregators, providing us with the volume adjusted market coverage across all trading environments. They also employ strong security and reliability guarantees, using a decentralized network of high-quality node operators and data sources to provide high availability and manipulation resistance against any single point of failure.
We intend to expand upon this initial integration of price feeds by also using Chainlink oracles to disclose more detailed transaction-related data about Sandbank on-chain for even greater transparency.
How does it work?
Sandbank will call Chainlink’s Price Reference Contracts to access up-to-date price feeds for the three currencies supported on the platform — BTC/USDT, ETH/USDT, and USDT/USD. The on-chain updates of the prices will be programmed to occur based on time (every hour).
Here is a diagram showing how the integration works:
These updates will then directly be used in the Sandbank service when:
- Denominating users’ investment balances in USD value.
- Determining interest rates for Sandbank’s investment/loan products.
- Calculating the value of collateral against the liquidation price for outstanding crypto loans.
- Updating exchange rates for instant coin swaps.
As a newly established crypto banking platform with a centralized system, it is important for us to build trust with customers. The best way to acquire the trust from the crypto investor community is to be effective and transparent at the same time.
Therefore, Sandbank hybrid-DeFi architecture takes into account the advantages of both centralized and decentralized systems. DeFi platforms try to execute all functions on-chain but it comes with downsides around inefficiency, inaccuracy, and inability to prevent fraudulent activity.
Sandbank’s hybrid-DeFi on the other hand keeps necessary functions off-chain to maintain efficiency and puts information that requires transparency on-chain to enhance the trustworthiness of our system. In this way, we expect to be able to respond more quickly to the spontaneous needs of the crypto investor community while maintaining the advantages of blockchain, particularly decentralization and transparency.
By leveraging Chainlink, Sandbank obtains a weight-adjusted on-chain price in a very efficient way. Our users no longer need to rely on Sandbank itself to maintain accurate off-chain price feeds for making investments and loans. We are excited to offer a more evolved and trustless approach to our hybrid-DeFi ecosystem.
Commenting on the integration, Sandbank CEO Hyunmyung Lee, stated “Sandbank’s mission is to build a fast, efficient, safe and trustworthy platform where users can constantly get passive income on their digital asset holdings. Our integration with Chainlink brings us a step closer to achieving this, ultimately allowing us to provide customers with a better banking service in the digital asset industry. Through Chainlink’s on-chain price feeds, we can offer users unparalleled transparency while still receiving all the centralized guarantees users want when securing precious financial assets.” .”
Learn more about Sandbank
Register to Sandbank now and seek for the highest interest rate! Only the newly registered users will have access to the ‘Best Interest Guaranteed (BIG)’ product for a limited time. BIG automatically adopts the highest interest rate available in the renowned DeFi data aggregator, loanscan.io, and applies to the user’s daily interest profit rate. Get on board with Sandbank now!
Learn more 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.
Chainlink is an open-source blockchain abstraction layer for building and running decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Kyber Network; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.
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