Liquidity market protocol BENQI has just announced the integration of Chainlink Price Feeds on its mainnet. With this high-quality price data accessibility, BENQI became one of the first protocols to leverage the Chainlink decentralized oracle network on the Avalanche blockchain, further decentralizing a key component of the protocol, the price oracle.
BENQI's algorithmic liquidity markets will benefit greatly from Chainlink Price Feeds integration. Acquiring up-to-date price data is essential in ensuring the safety of the funds on the protocol. As BENQI's solution involves lending rates and liquidation threshold checks, having fresh and tamper-proof data feeds for all the assets is crucial. Introducing Chainlink's price feeds enables this with its industry standard and time-tested decentralized oracle network.
The mainnet integration of the Chainlink Price Feeds will be live within a few weeks. Users will benefit with Chainlink-fed proceeds of : AVAX/USD, LINK/USD, ETH/USD, wBTC/USD, USDT/USD, and DAI/USD. More Price Feeds will launch in the future as the BENQI ecosystem grows.
Price feeds being a critical piece of infrastructure of this protocol, integrating more data sources leads to further decentralization. Having more sources will help thwart susceptibility to data manipulation and other attacks, providing users of the protocol with additional security and peace of mind.
BENQI Co-founder Hannu Kuusi comments:
“Price oracles are one of the most often overlooked yet extremely important elements within decentralized protocols. After internal research and discussions, we decided to go with the industry standard oracle network, which is already securing billions of dollars within decentralized financial applications alone. Having Chainlink secure our price feeds, we have an added confidence in the security and health of our protocol.”
The vision of building an open and regulatory compliant decentralized financial applications network is an essential part of the BENQI project. Integrating Chainlink allows the developers to explore this option for the entire Avalanche network and will also potentially be used on future subnets. LINK, The native asset of Chainlink, will become one of the first few pools to open once the BENQI protocol goes live on the mainnet.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.