Dfyn Network integrated with Chainlink Price Feeds
Introduction
After announcing the recent launch of their predictions market, Dfyn Network is happy to announce an integration with Chainlink Price Feeds on Polygon mainnet, with Chainlink acting as the go-to oracle solution for the Dfyn Network.
To start, Dfyn Network have added the MATIC/USD Price Feed as a secure and reliable source of price data to settle their predictions market. The Dyfn prediction platform allows users to take positions on short-term price movements, with 5-minute windows acting as individual “rounds”. Users can choose either “bull” or “bear” to indicate whether they think the asset price will go up or down by the end of the round. Payouts are given out to those who chose the correct option, with a portion of the winnings used to burn their native DFYN token.
Understanding the Importance of Oracles
An oracle is a data service provider that allows smart contracts to access data and computation not native to the blockchain. Oracles are needed because blockchains cannot inherently call external APIs or easily validate external data — a limiting feature frequently known as the blockchain oracle problem. For example, a smart contract offering crop insurance would not know a drought has occurred without reliable inputs like weather data.
An oracle provider solves this problem by providing all types of outside data to smart contracts, from real-time price feeds to real-world data like regional rainfall and sporting event outcomes. Importantly, oracles aim to fetch, validate, and transmit data on-chain in a highly secure and reliable manner to bring the same trust assumptions to external data that exist for the underlying execution of the smart contract’s logic.
Why Chainlink?
Chainlink is the most widely-used and time-tested decentralized oracle network, already helping secure tens of billions of dollars in value for top DeFi protocols. Aside from providing premium quality data and robust backend infrastructure, Chainlink’s flexibility enabled the creation of a custom feed that queries every 30 seconds, helping ensure that market prices are consistently up to date.
As you can see, accurate and reliable price feeds are critical to proper functioning of any prediction market — especially considering the fast pace of Dfyn 5-minute rounds. After searching through a wide range of oracle solutions, Chainlink stood out as the best option due to key design features like:
- 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 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 extreme network congestion.
- 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.
- 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.
Future Plans
Dfyn Network will soon be adding additional prediction markets secured by Chainlink Price Feeds, including LUNA, DFYN, and ROUTE! They plan to keep adding more markets as demand grows and our platform advances.
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.
About Dfyn
Dfyn is a multi-chain AMM DEX currently functional on the Polygon network. Dfyn nodes on various chains act as liquidity entry and exit points into the cross-chain liquidity super mesh that is being enabled by Router Protocol.
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