Blockchain platform Elastos has announced its integration with a Chainlink powered ELA/USD price reference data feed to support its upcoming cross-chain stablecoin.
Chainlink is one of the top decentralized oracle networks for deploying the ELA price feed on the Elastos platform. It is also one of the top dApps on the Elastos blockchain deployed by the Cyber Republic ETH taskforce.
The ELA stablecoin protocol will be used to collateralize ELA and also to mint cross-chain stablecoins pegged to USD. Therefore, it will immensely help the ELA holders by generating a stable digital currency that can also be used as collateral across Elastos and other DeFi platforms. Every time the ELA protocol mints a stablecoin, the user will receive a collateralization price data feed. Accordingly, if ELA’s market price falls below a specified liquidation price, the user’s CDP (collateralized debt positions) will be liquidated. Chainlink’s newly launched ELA/USD price reference feed will play a crucial role in supporting this process by providing reference prices to trigger liquidations.
Both the Elastos ecosystem and the DeFi space will be benefitted from this newly launched price reference data feed, which will provide users access to a reliable form of cross-chain that is not vulnerable to market volatility. With this integration, Elastos will be able to leverage both DeFi (loan issuances) and non DeFi projects (price algorithm developments for web applications or content monetization) via Chainlink’s price reference data feeds.
The Elastos Info Team always wanted to build an advanced dApp that can revolutionize the DeFi ecosystem with new features to connect users with real-world data and traditional infrastructure securely. After researching through a wide array of solutions, Chainlink appeared to be the perfect solution for the Elastos ecosystem. Chainlink’s tamperproof and high-availability data reference feeds, combined with the tremendous flexibility of Elastos’ Ethereum Sidechain, will help developers to build a unique DeFi platform over the scalable architecture of the Elastos SmartWeb. Moreover, Chainlink uses only secure node operators to maintain robust quality control over its data price oracles. This, in turn, helps create an aggregated and reliable data price feed for the users to quickly secure their funds.
Chainlink also sources its price date feeds from numerous data aggregators, thereby providing a healthy market. Such a distributed model helps in preventing price manipulation from affecting Elastos’ stablecoin. Thus, Chainlink is considered the best choice to provide a price data reference framework for collateralization checks on users’ CPDs.
To this development, Clarence Liu, the Vice President of Development for Elastos, remarked,