Drops Integrates Chainlink Price Feeds to Secure NFT-Backed Loans and Margin Trading
The Drops team is pleased to announce that they have integrated Chainlink Price Feeds on Ethereum mainnet to support our NFT-focused DeFi ecosystem. By integrating Chainlink’s market-leading decentralized oracle network, Drops ensures that loans are accurately and securely priced against various cryptocurrencies or stablecoins. The initial integration supports the following Chainlink Price Feeds on Ethereum: WBTC, ETH, USDC, ENJ, UMA and additional stablecoins.
Drops selected Chainlink because it’s the most widely-used and time-tested oracle solution in the blockchain industry, already securing tens of billions of dollars for leading DeFi projects. Chainlink Price Feeds source high-quality price data using decentralized oracle networks that have a strong track record of performance during extreme network congestion and market volatility. Additionally, Chainlink Price Feeds are very easy to integrate, as they have an extensive suite of pre-made decentralized oracle networks already running live on Ethereum, Polygon, and other leading blockchains.
Securing Our NFT-Focused DeFi Ecosystem With Chainlink
- 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 wash trading. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
- 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. Chainlink nodes have a strong track record for reliability, even during high gas prices and infrastructure outages.
- 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 oracle network.
- Reputation — 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.
As the Drops ecosystem expands to yield farming via Vaults, it will become increasingly important to optimize the stability of all collateralized positions across the protocol. Chainlink Price Feeds provide such stability, as well as the ability to scale the number of assets we support and scale our oracle security as it rises in TVL.
About Chainlink
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper.
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About Drops
Drops brings DeFi-style infrastructure to NFTs, adding much-needed utility to idle NFT assets. Users can leverage their NFTs to obtain loans and earn real yield, reducing the opportunity cost of holding NFTs long-term.
This Drops infrastructure will become increasingly important as we witness the rise of “financial NFTs” — an expansion of the space beyond digital artwork into more tangible financial instruments.
Drops will offer gasless transactions and a smooth user interface by leveraging the layer-two platform Polygon, enabling fair and frictionless participation for all users.
