Crypto News– Our initial integration centers around the utilization of the following Chainlink Price Feeds: wstETH/stETH and rETH/ETH. They chose Chainlink as our preferred Oracle solution for its seamless integration capabilities and proven reliability in real-world applications.
Pendle and Chainlink Team up for Added Security
Pendle Finance stands at the forefront of DeFi yield management protocols, offering users the unique ability to separate yield-generating assets into their original principal and yield components. For instance, a user can deposit ETH and mint two distinct tokens: PT stETH (representing the ETH principal) and YT stETH (representing the staking yield for stETH), effectively mirroring the concept of a stripped bond. This innovation opens up a realm of sophisticated yield management strategies for DeFi enthusiasts, empowering them to independently trade and take positions in the dynamic yields generated by assets like staked ETH, cDAI, and other yield-producing digital assets.
To ensure the accuracy of conversions within liquidity pools for Pendle’s SY wrappers of rETH and stETH, we required access to real-time asset prices provided directly on-chain with the utmost reliability. Accurate market asset prices should reflect a volume-weighted average derived from all trading environments. Therefore, we sought the assistance of an Oracle network to fetch aggregated price data off-chain and securely deliver it on-chain for consumption by our application. After a thorough evaluation of various Oracle solutions, we selected Chainlink Price Feeds due to their comprehensive set of features, including:
High-Quality Data: Chainlink Price Feeds source data from a multitude of premium data aggregators, resulting in price data that is aggregated from hundreds of exchanges. This data is weighted by trading volume, cleansed of outliers, and is resistant to manipulation, ensuring it represents a precise global market price.
Secure Node Operators: Chainlink Price Feeds are safeguarded by independent oracle nodes operated by reputable blockchain DevOps teams, data providers, and established enterprises. These nodes are thoroughly reviewed for security and are designed to resist Sybil attacks. Chainlink nodes have demonstrated exceptional reliability even during periods of high gas prices and infrastructure disruptions.
Decentralized Network: Chainlink Price Feeds achieve decentralization at multiple levels, including the data source, oracle node, and oracle network. This architecture provides robust protection against downtime and tampering, whether by the data provider or the Oracle network.
Reputation System: Chainlink offers a robust reputation framework and on-chain monitoring tools, allowing users to independently verify the historical and real-time performance of Oracle node operators and Oracle networks.
By integrating Chainlink Price Feeds, Pendle Finance aims to enhance the reliability and accuracy of our platform, ensuring that our users have access to the most dependable and up-to-date asset pricing information for their DeFi yield management strategies.
About Chainlink
Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.
About Pendle Finance
Pendle is a decentralized protocol that enables the tokenization and trading of future yields. As a yield trading protocol, they are bringing one of the largest markets of traditional finance, the interest rate derivative market (worth over $500T in notional value), into DeFi.
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