Chainlink announced a new partnership with Lien protocol to provide an oracle solution for that. The partnership includes integration of Chainlink’s oracle in Lien and using ETH/USD price feed.
“Autonomous crypto derivative platform @LienFinance is integrating # Chainlink’s ETH/USD Price Reference Data. Chainlink’s #DeFi price oracle will be used for settling contracts, confirming collateral eligibility, and calculating volatility,” Chainlink tweeted.
Another Use Case for Reliable Data Feeds
Lien protocol provides an autonomous governing and managing system for crypto derivatives. This system eliminates the need for governance mode in cryptocurrencies. The underlying definition of Lien creates a need for an oracle solution to work without a challenge.
The need for oracle is mentioned in Lien’s white paper, too. The development team has researched to find the best solution and integrate it with the protocol. They chose Chainlink’s oracle, one of the leading decentralized oracle providers.
Lien team believes in Chainlink’s oracle due various reasons. According to the announcement:
“There are several reasons for using Chainlink as an oracle within the Lien protocol, including stable operation, frequent and accurate price updates, and the establishment of a permanent operating system that allows the same contract address to be used even when there is an update on the Chainlink platform.”
The integration of Chainlink to Lien makes it possible for the protocol to run autonomous and reliable operations more efficiently. This feature is among the top reasons which Lien chose Chainlink.
Lien will start integrating Chainlink with ETH/USD Price Reference Contract. This price reference tool is secured by 21 independent nodes that collect data from seven data aggregators. Lien uses this price feed for three reasons. According to the announcement:
“Calculating the settlement prices of SBT and LBT, confirming the eligibility of collateral when minting iDOL or in emergency auctions, and deriving spreads for Lien FairSwap.”
Lien tries to provide practical solutions for smart contract and DeFi developers. Lien protocol, using Chainlink’s oracle as the underlying bridge between chains, can successfully calculate volatility and help developers make more reliable products. The Lien protocol mainnet will launch soon, and developers can see and feel the impact of the autonomous system in combination with Chainlink.
If you found this article interesting, here you can find more Chainlink News
