Notional Finance Will Now Support Its Fixed Rate Collateralization Calculation With Chainlink Price Feeds
DeFi is short for Decentralized Finance. It takes inspiration from the blockchain technology and its emerging nature of connecting two individuals directly without involving any third party. Technically speaking, DeFi is a peer-to-peer financial service.
Functions of DeFi involve enabling users to lend or borrow digital assets for their benefit. It acts as a bank without its participation by allowing lenders to earn interest for the time they have offered their holdings to a borrower.
Background
Chainlink is an industry-standard for oracle services. It allows clients to access or buy its services to power the hybrid smart contract on a blockchain network. Chainlink offers a universal gateway to enterprises while securing billions of dollars for them.
Notional Finance is an Ethereum-based lending platform that connects borrowers and lenders. It has successfully solved the issue of variable rate lending by creating a true market for borrowers and lenders.
Notional Finance x Chainlink Price Feeds
Notional Finance published a blog post on its official website to share the update that it has integrated Chainlink Price Feeds with the release of V2.1. The integration allows Notional Finance to access the high-quality price data to better work on its fixed-rate collateralization calculations.
According to the blog post, Notional Finance has integrated four Chainlink Price Feeds. These are:-
- BTC/USD
- ETH/USD
- DAI/USD
- USDC/USD
Jeff Wu, the Chief Technical Officer of Notional Finance, called Chainlink Price Feeds the best solution on the market for offering high-quality price data. Jeff Wu added that the integration enables Notional Finance to calculate collateral and liquidation metrics which further enables lenders to have assurances that their protocols remain solvent.
Notional Finance reviewed various options but chose to integrate Chainlink Price Feeds as it offers secure node operators, a decentralized network, and proven transparency.
