UPFI Integrates Chainlink to Maintain USD Peg on Solana

Chainlink’s recent integration with l Network will assist the stablecoin operations from multiple fronts. Primarily, the stable coin will receive real-time tamper-proof price feeds on the Solana mainnet. Initially, USDC/USD price feeds will be brought and referenced during mints and redemptions.

After the de-pegging incident with Terras’s UST, the stablecoins are looking for ways to optimize the operations and fortify the infrastructures. To that end, UPFI Network will now receive the secure, robust data needed to maintain its peg from the time-tested Chainlink Oracle. The integration is expected to enhance all the monetary operations through UPFI stablecoin.

Built on the  Solana mainnet, UPFI is a stable coin soft-pegged to the USD that is partially collateralized and partially stabilized through algorithms. The token uses only a portion of the capital for the minting and the remainder will be stored as collateral in volatile assets. Through this system, the network is able to create a natural demand for stablecoin while also capturing the value of volatile assets.

The UPFI tokens come with a dual-collateral system that accepts USDC and UPS, the UPFI share token. The USDC deposited during UPFI will be collateralized and the UPS tokens will be sent to a burning portal. When the user redeems the UPFI tokens for the collateral, USDC tokens will be returned and the protocol mints the UPS tokens again.

To help their smart contracts access precise real-time data during the minting and redemptions, the network needs an oracle solution that brings USDC/USD exchange rates securely and accurately. This function on the network is critically important to keep the value of the token stable.

The network has decided to integrate with Chainlink as it has become the industry standard for Oracle solutions in recent times. Moreover, their secure digital infrastructure gives reach to a wider market and higher quality data by comparison. The network is also proven even during times of extreme network conditions. After extensive research, UPFI has listed the benefits of Integrating with Chainlink Oracle.

• Chainlink collects its high-quality data only from premium data aggregators to help avoid suspicious volumes, outliers, and other discrepancies.
• On Solana, Chainlink can update price feeds for a significantly lower deviation rate and is consistent with current market conditions.
• The Chainlink Network is robust even during market downtimes and data packets cannot be tampered with or manipulated by anyone.
• The reputation framework and on-chain monitoring help users to verify the fairness, accuracy, or performance transparently in real and historical time.

In the official newsletter, Harry Nguyen, Founder of UPFI Network, expressed his interest in integrating the most sought-after oracle network into the entire crypto ecosystem. The newsletter also stated that Chainlink will provide the custom update frequencies for the stablecoin to support its design on Solana.