We are proud to announce our mainnet integration of Chainlink, the market-leading decentralized oracle network.
DeFiner’s savings account protocol is now consuming five Chainlink Price Reference Data feeds to price the assets held in it, which serve as a liquidity pool to fund our decentralized lending platform. Chainlink price feeds are referenced in order to securely and reliably issue loans and liquidate undercollateralized loans, allowing DeFiner to operate in an automated and trustless manner that users can rely on.
We selected Chainlink as our go-to oracle solution because they provide accurate, volume adjusted price feeds that have been proven to collectively secure over $2B in USD value for many top DeFi applications on mainnet. These price feeds are decentralized to avoid any single point of failure and are easy to integrate, which sped up our mainnet launch and will enable us to quickly scale up to support additional assets in the future as demand for DeFiner grows.
DeFiner: Decentralized Finance
DeFiner is a platform for decentralized digital asset financial services, specifically a lending platform where users can deposit and borrow funds. Depositors and borrowers both accumulate interest over time, which is earned by lenders and paid by borrowers. This platform is broken down into two products: a digital asset savings account (made up of lenders) and a peer-to-peer lending marketplace (for supplying borrowers).
Digital asset savings account – a liquidity pool in which to deposit crypto assets and earn interest, operated by a smart contract that executes deposits, withdrawals, loans, and repayments. DeFiner does not control the DeFi savings account; users transact directly in a non-custodial manner.
- The automated nature of the protocol leads to efficiency and a reduction in total costs. This allows DeFiner to pay significantly higher compounding interest on user deposits than standard banking.
Peer-to-peer lending marketplace – a place for borrowers to obtain a crypto loan. The borrower puts his/her digital assets up as collateral, which then disperses the loan from the savings accounts, all of which is facilitated through our Ethereum smart contracts. No middleman. No credit check. No paperwork.
- This method is cheaper, more convenient, more secure, and more accessible than standard banking.
Assurance of DeFi Value with Chainlink
- DeFiner liquidity pools need secure and reliable price data to provide assurances to savings account holders that their funds will always remain secure. This is particularly important in DeFiner when it comes to making sure that loans are always issued for the correct amount and that undercollateralized loans are accurately liquidated.
Chainlink’s price reference feeds provide DeFiner with accurate, highly available, and tamperproof price feeds used to price assets in our savings account. The current implementation supports ETH and the following ERC20 tokens: DAI, USDC, USDT, BAT, and ZRX.
Each token has its own borrowing power specified in the DeFiner smart contract. When an account initiates a loan of a particular token, the maximum amount of the token that it can borrow would be its total available collateral multiplied by the borrowing power of the token.
- In the DeFiner smart contract, a user’s LTV (loan to value) is defined as the ratio of the value of the tokens an account borrows to the value of the tokens it deposits as collateral. The LTV will increase as the price of collateral tokens drops. If an account (or a liquidator) calls for liquidation of a borrower, the contract will first fetch the price from Chainlink and then check the latest LTV of the borrower. The liquidation opportunity is available if the LTV exceeds a predefined liquidation threshold. Otherwise, the liquidator’s request will be rejected. In the liquidation process, the liquidator purchases the borrower’s collateral at a discounted market price, which resets the borrower’s LTV back to the value set by borrowing power.
Some of the other key features we found valuable in Chainlink’s price feeds were its use of decentralization at both the node and data level, meaning there is no single node or data source that is a centralized point of failure.
The oracles retrieve price data from multiple data aggregators, which protects against single exchange sandwich attacks and quick volume shifts between exchanges that can distort asset prices. Lastly, they provide transparent real-time visualizations that allow any of our users to check the current on-chain price, verify how price updates occur, know which nodes are providing data to the oracle, and much more.
Chainlink’s ETH/USD Price Reference data feed visualization
- “DeFiner's mission is to provide the safest and highest-return DeFi lending solution in the industry,” said DeFiner Founder and CEO Jason Wu. “The integration of Chainlink strengthens our DeFi savings smart contract by making sure that all assets held within are highly secure, using robust and transparent decentralization. We look forward to working with Chainlink to continue expanding our liquidity pools to provide users with a greater selection of assets and financial services.”
We’re excited to offer users around the world with a higher-yielding, non-custodial savings account that can beat out traditional bank accounts.
If you’re a developer and want to quickly get your application connected to Chainlink Price Reference Data, visit the developer documentation and join the technical discussion in Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
- Chainlink is an open-source blockchain abstraction layer for building and running decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Kyber Network; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.
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- Definer is a true peer-to-peer fintech platform for digital savings, loans, and payments.
- DeFiner’s DeFi Lending platform enables users to effortlessly lend, borrow, and earn digital assets within a global network.
- The DeFiner Organization was founded in Feb 2018 and includes a diverse team of subject matter experts in blockchain, economics, finance, business, computer science and digital marketing. Our core team is based in Minneapolis, but we also have colleagues located in San Francisco & New York. Together we share a common mission of advancing financial trust, growth & simplicity through the blockchain!
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