Hedge Integration with Chainlink Price Feeds
Hedge, an interest-free, low minimal collateral ratio lending protocol on Solana, announced its integration with Chainlink Price Feeds on the Solana mainnet.
Integration HighLights
As previously stated, Hedge integration with Chainlink Price Feeds will access tamper-proof, high-speed market data. Since, it helps determine the values of collateral assets in Hedge vaults, which are used to determine collateral-to-debt ratios and trigger liquidations, ultimately helping ensure protocol solvency.
Chainlink Price Feeds help secure collateralization and liquidation ratios for Hedge borrowers, helping ensure protocol solvency even when market conditions are volatile.
To start, Hedge has integrated the SOL/USD Price Feed for the Hedge SOL vault, with more feeds to come in the future.
Helping Secure Hedge Vaults with Chainlink
Furthermore, Hedge allows users to take out interest-free loans for a one-time fee by depositing collateral to mint USH, a stablecoin soft-pegged to the US dollar. Therefore, users are incentivize to keep their collateral-to-debt ratio above 110% to avoid liquidation. When an undercollateralized vault is liquidated, users who have deposited USH in the stability pool are returned discounted collateral as a reward, with the rest of the collateral distributed to the liquidator and HDG token holders. In conclusion, USH keeps its floor price at $1 by being redeemable for its underlying collateral at all times, though a redemption fee ensures this happens infrequently and only when needed.
Moreover, accurate collateralization and liquidation metrics depend upon robust price data. If Hedge’s smart contracts calculate collateral values with inaccurate or manipulated price data, this can result in undercollateralized loans and cause unwanted liquidations and protocol insolvency.
Chainlink Price Feeds Superior Features
- High-Quality Data
- Secure Node Operators
- Decentralized Network
- Transparency
Sebastian Grubb, Founder of Hedge
“Reliable price data is mission-critical for any lending platform, and Chainlink Price Feeds are the most battle-tested solution on the market. With this integration of Chainlink Price Feeds help calculate collateralization and liquidation metrics, Hedge users can have higher assurances that their 0% interest loans are supported by secure and accurate price data.”
About Chainlink
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain.
About Hedge
Hedge is an interest-free, low minimal collateral ratio lending protocol on Solana. It gives users the best deal on access to liquidity against their collateral.
SOURCE
https://hedgelabs.medium.com/hedge-integrates-chainlink-price-feeds-on-solana-ca0c59a9e78c
