According to the latest development, the decentralized finance (DeFi) platform Parrot has announced that it is going to use the Chainlink Price Feeds for liquidating loans and estimating the collateral requirements for lending the money. This particular announcement has caught the attention of blockchain experts as the partnership is expected to enhance the prospects of DeFi further in the industry.
The reason behind the selection of Chainlink Price Feeds is not very difficult to estimate. The company has been at a forefront of supplying Oracle-based price feeds to a number of players and this latest addition will further consolidate its lead in the segment. The price feeds offered by Chainlink is immune to any kind of forgery or tempering which makes it one of the preferred choices of organizations across the spectrum.
The total value lock by the projects involving Chainlink Price Feeds runs into billions of dollars and even in the case of an unexpected crash, downtime, or volatility, the data continues to offer the highest standards of safety and security for all the stakeholders involved in the ecosystem.
Parrot is confident that with this particular integration, the company is able to offer better services to its users who can take the loan against their positions on LP tokens. These tokens can be used as collateral and the stable coin of the Parrot platform can be borrowed by the users. Thanks to the decentralized data capabilities of Chainlink, which picks the data from a wide range of sources, Parrot finds Chainlink a perfect partner in its business model. Users are also happy as they can’t be defrauded or cheated against the false value of loans and borrowings.