Lien is excited to announce its collaboration with Chainlink. Chainlink is the leading decentralized oracle network. Lien is a protocol system for crypto products that can be operated without the need for any artificial governance mode. As it is stated in Chainlink’s whitepaper, the firm requires an oracle for the functioning of the Lien protocol.
Prior to the integration, the firm has been looking for several oracles to choose the one that fits the best for the Lien protocol. After going through many such oracle solutions, Lien came to the conclusion that Chainlink was the only one capable of satisfying its oracle’s requirements.
There are many reasons why Lien chose to collaborate with Chainlink:
- It has a Stable Operation
- The Price updates are Accurate and Frequently calculated
- Is has a permanent operating system that enables a similar contract address that will not change after any updates on the Chainlink platform.
Particularly, from the above-mentioned reasons, the third one is the most important of all. Chainlink helps Lien achieve what they exactly desire to, i.e., to operate under a reliable and autonomous protocol. Lien believes that Chainlink’s immutable nature of contract addresses is not only helpful for their protocol system but is also quite helpful for their Defi projects looking for stable implementations.
Specifically, the Lien protocol will be integrating with Chainlink’s ETH/USD. The Price Reference Contract is collectively secured by 21 nodes that gather data from at least seven different high-quality data accumulators.
The Lien protocol purchased the Chainlink ETH/USD for the following reasons:
- To Calculate the settlement prices of SBT and LBT.
- To Confirm the collateral eligibility at the time of minting iDOL or during emergency auctions.
- To Derive Lien FairSwap spread.
Lien is confident that they are successfully able to calculate volatility with the use of Chainlink’s ETH/USD. To be able to integrate volatility into the smart contracts is a big move for the development of overall DeFi space.