Chainlink Price Feeds Now Live on the Terra Testnet, Bringing Premium Market Data to its DeFi Ecosystem

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Terra

6 min readOct 25, 2021

Chainlink Price Feeds, the most widely relied on decentralized price oracle solution across DeFi, is now live on the Terra testnet! As the recommended oracle solution for the Terra ecosystem, smart contract developers can leverage Chainlink Price Feeds for access to high-quality, tamper-proof price reference data across a wide range of assets. Additionally, by running natively on Terra’s high-throughput blockchain, Chainlink Price Feeds have no dependencies on other blockchains and thus will support low-latency price updates at reduced costs to meet the needs of scalable DeFi apps.

The Terra-Chainlink integration was made possible through a Chainlink Community Grant awarded to blockchain development and consulting firm Hack.bg. Hack.bg is already in the process of deploying Chainlink oracles on the Terra mainnet for use in the near future. The initial set of Chainlink Price Feeds available on the Terra testnet include BTC, ETH, UST, LUNA, LINK, and more, with plans to continually launch more feeds as required by the Terra ecosystem.

As the most time-tested and fully-featured oracle solution, Chainlink Price Feeds provide developers with both pre-built oracle solutions and a flexible framework for customized solutions that cater to teams’ unique data and/or security requirements. Chainlink Price Feeds are widely recognized for offering high-quality data backed by robust decentralized infrastructure, saving teams considerable development time and resources by not having to build their own solutions or rely on unproven alternatives. Such infrastructure is beneficial for new teams wanting to establish a strong foundation for their protocol’s security and existing teams wanting to scale the security of their infrastructure to account for higher TVL responsibilities.

We encourage Terra ecosystem developers to begin testing and building today with Chainlink Price Feeds using the Chainlink developer documentation. If you want help with your integration or want to launch new Chainlink Price Feeds, reach out to the team.

Terra is an application-specific blockchain built on the Cosmos SDK and Tendermint consensus. The Terra protocol deploys a suite of algorithmic, fiat-pegged stablecoins underpinning a thriving DeFi ecosystem like Anchor, CHAI, and Mirror Protocol. LUNA, the native staking and governance asset of Terra, absorbs the short-term volatility of Terra’s stablecoins, with Terra’s stablecoin (e.g., UST) demand a function of demand for Terra’s DeFi ecosystem — accruing value to LUNA via seigniorage.

UST currently exists on Terra, Solana, Ethereum, and Binance Smart Chain. Following the recent Columbus-5 upgrade, Terra is also now IBC-compatible, unleashing UST and Terra asset liquidity on the Cosmos ecosystem. Col-5 also introduced some meaningful scaling improvements, bolstered staking yields for LUNA, and simplified economic logic.

By combining the Terra blockchain and Chainlink oracles, smart contract developers can build scalable, external connected DeFi applications with strong security and reliability guarantees. Chainlink Price Feeds offer plug-n-play adoption by development teams, empowering a number of DeFi use cases on Terra like borrowing/lending markets, options and futures contracts, automated assessment management strategies, algorithmic stablecoins, advanced automated market makers, prediction markets, and various other financial products. Chainlink Price Feeds empower these use cases by helping perform key on-chain functions, such as determining users’ borrowing capacity, marking undercollateralized loans for liquidation, settling options at the time of expiry, setting fair market exchange rates for multi-currency payment options, and much more.

Chainlink Price Feeds are a recommended solution for developers because they incorporate several key features:

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. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
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 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.
Reputation — 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.

The integration of Chainlink oracles supports the rapid expansion and increased security of Terra’s DeFi ecosystem, giving developers the decentralized infrastructure required to build increasingly advanced hybrid smart contract applications. In addition to the initial set of Chainlink Price Feeds, we plan to help facilitate both the launch of additional data feeds and other oracle solutions to widen the suite of decentralized services available to ecosystem developers.

“Chainlink Price Feeds are the industry standard oracle solution in DeFi, so it is exciting to see its expansion to the Terra ecosystem, allowing for an upgraded oracle mechanism for Mirror Protocol to further secure the issuance and liquidation of tokens mirroring real-world assets,” stated Stanford Yu.

“Highly secure and reliable Price Feeds are crucial to the health of the DeFi ecosystem as a whole. With the widely adopted Chainlink Price Feeds now on the Terra Testnet, we are gearing up to improve Anchor Protocol’s savings product with the most time-tested oracle solution in the industry,” stated Matt Cantieri.

“Chainlink Price Feeds have become the industry standard solution for decentralized price oracles, offering DeFi projects easy-to-integrate price oracles backed by high-quality data and robust backend infrastructure that’s proven resilient to volatile market conditions and extreme network congestion,” stated Do Kwon, co-founder of Terra. “Smart contract developers can use Chainlink Price Feeds in combination with the high-throughput and low fees of the Terra blockchain to build increasingly sophisticated DeFi applications that interoperate with off-chain datasets and can scale to meet the demands of a global audience.”

About Chainlink

Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.

Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.

About Terra

Chainlink Price Feeds Now Live on the Terra Testnet, Bringing Premium Market Data to its DeFi Ecosystem

Written by The Intern