SmartCredit.io Integrates Chainlink Price Feeds to Help Secure Its Global Peer-to-Peer Lending Marketplace

SmartCredit.io
SmartCredit.io & ChainAware.ai
4 min readNov 15, 2021

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SmartCredit.io is excited to announce the integration of Chainlink’s industry-leading decentralized oracle network into its global peer-to-peer lending marketplace on Ethereum. Specifically, SmartCredit.io is using Chainlink Price Feeds to help determine users’ loan collateralizations and liquidate undercollateralized loans according to globally accurate fair-market prices.

To help secure its platform, SmartCredit.io is using the following Chainlink Price Feeds backed by USD: BAT, BNT, CRO, DAI, ENJ, ETH, HT, LINK, LRC, MKR, NEXO, OKB, REP, UNI, USDC, USDT, and ZRX. One of the main reasons we decided to integrate Chainlink is because it’s proven to be the most time-tested oracle solution in the blockchain industry, with its Total Value Secured reaching $75B+. Moreover, thanks to their multiple layers of decentralization, Chainlink Price Feeds have a proven history of providing reliable market data during extreme market volatility and black swan events.

Chainlink — SmartCredit.io integration

Understanding the Role of Chainlink Oracles

Oracles are middleware technology that allow smart contracts to interact with real-world data from outside blockchain environments. SmartCredit.io uses Chainlink oracles to validate users’ loan collateralizations. For example, if a user’s collateral value declines too much relative to the loan’s principal value, then the loan will be liquidated to protect the solvency of the lending and borrowing protocol.

The proceeds from liquidations will be used to pay lenders who supply liquidity to the protocol. If these funds are not enough to cover all the obligations, then SmartCredit.io’s proprietary Loss Provision Fund will cover the missing funds.

Chainlink oracles provide high-quality market data to help ensure that borrowers’ collateral assets are accurately priced at global fair-market rates. There are a number of pre-specified conditions that borrowers should keep in mind, including:

  • If the borrower pays back the loan at the right time, then the borrower gets their collateral back.
  • If the borrower does not pay back the loan, then the loan is liquidated to cover the debt obligations.
  • If a borrower’s collateral value declines too much, then the collateral is liquidated.

It’s crucial that SmartCredit.io uses accurate market data to determine loan collateralization ratios and asset prices, since inaccurate data could unfairly trigger liquidations. To solve this problem, we chose to use Chainlink for multiple reasons, including:

  • 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 from outliers and suspicious volumes.
  • 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 with a strong track record for reliability, even during high gas prices and extreme network congestion.
  • 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 the oracle network.
  • Transparency — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.

“It was important for our team to have a robust market data solution with high-quality price data that users could actively verify in real-time,” stated Martin Ploom, CEO of SmartCredit.io. “That’s why we selected Chainlink Price Feeds, because they bring next-level transparency to previously opaque processes.”

About Chainlink

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.

About SmartCredit.io

SmartCredit.io is an Ethereum based DeFi borrowing/lending platform focusing on fixed-interest and fixed-term loans and DeFi Fixed Income Funds (FIF). Smartcredit.io has 12,500+ registered users.

Chainlink feeds will secure the access to the borrowers collateral assets:

How the integration works

Chainlink price feeds go live with the SmartCredit.io Release 1.2.

Additional Information

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