Reflexer is busy launching a testnet. Its new partnership with Chainlink is a significant milestone in the developments process. Chainlink’s ETH/USD Price Reference Data is the main subject of this new partnership and helps te project have a reliable price feed for RAI, the first reflex bond.
Chainlink‘s oracle solution has seen a significant rise in adoption within the blockchain industry, especially the DeFi ecosystem. Reflex is the latest one to use the tools to access accurate data feeds.
It provides Generalized Ethereum Bond as a financial product that surely needs a correct price pair for ETH/USD. GEB is a framework dor building reflex bonds. This new asset type focuses on less volatility for holders and investors.
RAI is one of the reflex bonds by Reflexer that only uses ETH as collateral. Reflexer tests this bond in Kovan testnet. RAI focuses on decreasing the volatility of ETH to offer a more stable solution for DeFi applications. Reflexer needed an oracle able to provide the following types of price feeds (according to the press release by Reflexer):
- Prices for all collateral types accepted into the system (in RAI’s case only ETH).
- Price data for RAI itself. The data will be used as input for RAI’s internal feedback mechanism. This mechanism will change the borrowing power of all currently opened CDPs.
- Dara for the protocol token to automatically set a starting price for debt auctions.
Chainlink, the leading oracle provider in the blockchain industry could provide many needed features for Reflexer, so the team ultimately chose its Price Reference Contract.
Reflexrer tries to expand the partnership with Chainlink and even participate in improving oracle solutions and share findings with other projects that are using Chainlink’s Price Reference Contracts.
“We can use Chainlink’s Price Reference Data and leverage their large collection of existing node operators and modular external adapter technology to build customized decentralized oracle networks that connect to any API to support any collateral type desired,” according to the press release.
It will launch a Video AMA next week to discuss more the new partnership with Chainlink.
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