Bidao Partners with Chainlink to Add Support for More Cryptocurrencies as Collaterals

Bidao Partners with Chainlink to Add Support for More Cryptocurrencies as Collaterals
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Bidao announced a new partnership with Chainlink to integrate the price feed solution. The stablecoin wants to add more cryptocurrencies as collaterals. Chainlink Solutions can provide an aggregated market price for each collateral.

“@Bidaochain, a decentralized stablecoin built on @Binance_DEX, to use multiple Chainlink Price Reference Contracts to create & liquidate CDPs based on aggregated market prices. This expands the types of assets that can be used to collateralize Bidao CDPs”, tweeted Chainlink.

Oracle Solution for Price Feeds

Chainlink provides decentralized oracle solutions to integrate off-chain and on-chain data more accurately and securely. Bidao project wants to use those solutions to power the Bidao stablecoin.

Bidao will initially integrate ETH/USD, BTC/USD, and LINK/USD price feeds from Chainlink. Those pairs are currently running on Bidao’s mainnet. Adding Chainlink solutions for reference price data makes it possible for Bidao to add more cryptocurrencies as collaterals.

Chainlink’s oracle solution provides an efficient way to transfer data from off-chain sources to the blockchain. The received data will activate a smart contract. So, the accuracy if that is at a high level of importance.

Oracle solutions like the decentralized version provided by Chainlink, aggregate data from various data points. Using multiple sources for applications like price feeds mitigates the risk of failure in one source and also depending on just one source.

Using Chainlink on Bidao Blockchain

Bidao has two different tokens. The governance token is BID, and there is s stablecoin named BAI. BAI stablecoin is pegged 1:1 to US-Dollar. Users can deposit BID tokens or other supported collaterals like BTC, ETH, and LINK to act as over-collateralization and get a loan in the form of BAI.

Anyway, the system needs an accurate price for collaterals, and Chainlink provides a decentralized oracle solution for each of the above collaterals. Therefore, Bidao can be sure about the accuracy of the prices and prevent manipulation attacks that sometimes try to change the price points in low liquidity exchanges.

Bastian Aigner, CEO at Bidao, believes the new partnership strengthens the Bidao platform’s security: “Chainlink substantially hardens our pricing mechanism using the most decentralized and secure oracle infrastructure in the market, ensuring that user’s funds are never at risk.”

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