Defrost Finance Integrated with Chainlink Price Feeds
Defrost Finance — a native Avalanche stablecoin with over X TVL — has integrated Chainlink Price Feeds on the Avalanche mainnet. By integrating the industry-leading decentralized oracle network, Defrost Finance has access to high-quality, tamper-proof price feeds needed to accurately price liquidity pool tokens so users can securely mint the H2O stablecoin at the correct value.
This will provide users with stronger assurances that prices can not be manipulated by malicious third parties to disturb collateral calculations.
The initial integration involves the use of the following Chainlink Price Feeds: AVAX, ETH, USDC, USDT, DAI, and xJOE. They choose Chainlink as their go-to oracle solution because the infrastructure is seamless to integrate and time-tested in production.
Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
Defrost Finance gives investors the opportunity to use their liquidity pool tokens on decentralized exchanges and lending platforms to mint the H2O stablecoin and get rewarded in MELT, the Defrost governance token.
MELT can then be used in a variety of ways. It can be staked in various pools, including the single token one, which thanks to its auto compounding mechanism offers high APY, or deposited in the AVAX / MELT farm, which grants rewards in USDC from trading fees and allows users to partake directly in protocol revenue.
Staked MELT is the gateway to the governance system — only users who have it in their wallet can vote. This is fairly important when you consider that Defrost aims to eventually become a full DAO.
On a base level, Defrost acts as a platform that provides extra revenue to users by unlocking tokens staked on third-party platforms. It is a very remunerative way to use LPs that would otherwise sit idle.
In order to help secure the price of the LP tokens used as collateral to mint H2O, they needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, they needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, they integrated Chainlink Price Feeds because they provide a multitude of critical features such as:
1. 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 suspicious volumes. Chainlink’s data aggregation model generates more precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
2. 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 with a strong track record for reliability, even during high gas prices and extreme network congestion.
3. 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 the oracle network.
4. Transparency — 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.
Defrost Finance plans to both integrate Chainlink Keepers and spearhead a decentralized Price Feed for the H2O stablecoin. This priority, given the high-security features provided by Chainlink oracles are increasingly a necessary condition to safely integrate H20 into the Avalanche ecosystem.
“We have decided to use Chainlink Price Feeds for Defrost because we want to make sure our users are safe at all times and have access to the best instruments available. By using the most reliable price data on the market, users can have high assurances that the value of their staked collateral is priced at genuine market values. ” –Michele, Defrost Finance CEO and co-founder.
About Chainlink
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
About Defrost Finance
Defrost Finance is the platform behind H2O, the next-generation stablecoin, providing remunerative investment opportunities to its users. A fully fair launch, decentralized project, its aim is to change the world of finance for good.
