Waterfall DeFi
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Waterfall DeFi

Waterfall DeFi Integrates Chainlink Price Feeds to Help Secure Tranching Products

Waterfall DeFi is excited to announce that we have officially integrated Chainlink Price Feeds into our tranching products. Staying true to the ethos of our decentralized risk tranching protocol, we are thrilled to be working with the industry-leading decentralized oracle network, which now brings the most up-to-date and accurate pricing information to our users.

For the initial integration, Waterfall DeFi is using the following Chainlink Price Feeds for different protocol tokens found in our tranching products: ALPACA/USD and XVS/USD.

Understanding the Waterfall DeFi Protocol

Waterfall DeFi is a platform that offers risk diversification by tranching a portfolio of yield-generating DeFi assets. Our tranching mechanism builds on top of our yield aggregator logic, redistributing yield and principal from a selected pool of DeFi assets according to priority, arranged from the highest & fixed rate (Senior Tranche) to the lowest & variable rate (Junior Tranche). Waterfall is one of the first platforms to bring traditional tranching methodology to DeFi, enabling more conservative DeFi users to earn safer, fixed, and covered yields while also giving users tolerant of higher risk the option to leverage their yield returns generated from farms across the crypto space. To learn more about our novel product, check out this medium article.

Senior offers coverage for investments; Junior offers yield multiplying with leverage

Currently deployed on BSC, Waterfall DeFi strives to be a multi-chain protocol to help maximize inclusiveness and grow our global community. Becoming a multi-chain protocol is crucial as liquidity flows across chains over a short period of time. Often, lucrative yield opportunities exist in emerging layer-1 chains such as Avalanche and soon layer-2s such as zkEVM. With BSC as a foundation, we hope to maximize our reach in the DeFi space and enable the community to tap into their favorite farms on any chain.

Integrating Chainlink Price Feeds

During the tranched product deployment process, users’ deposited funds will be put into different farming protocol pools to earn yield. In addition to the native yield of the farms, further rewards will also be allocated in the form of native protocol tokens, such as ALPACA and XVS. These protocol tokens will be swapped to the standard assets of the product when it matures, adding to the total yield pool. In our BUSD Falls product, Alpaca tokens (ALPACA) and Venus tokens (XVS) earned will be swapped into BUSD according to the real-time exchange rate provided by Chainlink Price Feeds. With the integration of Chainlink Price Feeds, we will be able to pull the most accurate data during all protocol swaps for enhanced security and reliability.

Public Price Data Feeds available at data.chain.link

Chainlink is well-known to be the most time-tested oracle solution in the blockchain industry, already securing $75B+ for leading blockchain applications. Unlike other market data solutions, Chainlink features multiple layers of aggregation and decentralization, helping generate more precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.

Chainlink Price Feeds also offer many other superior features when compared to alternative market data solutions, 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.

Exploring Future Chainlink Integrations

As more protocols are included in our product suite, our integration with Chainlink will continue to grow as we expand our product offerings beyond stablecoin-only vaults to LP and derivative vaults.

We are also exploring the potential of going fully autonomous with Chainlink Keepers. We believe that Chainlink Keepers can be applied to various parts of our yield aggregating and tranching mechanics to help Waterfall become the decentralized and autonomous risk manager, supported by Chainlink, including auto-compounds and auto-rollovers of deposit cycles.

Find Out More


See how our decentralized risk tranching protocol helps users to better optimize their risk appetite when engaging in yield farming on the DeFi space.

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.

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.



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Waterfall DeFi

Waterfall DeFi

Bringing true risk tranching to Decentralized Finance