Silo Finance Integrates Chainlink Price Feeds to Help Secure Pricing on Isolated Lending Markets
We’re excited to announce that Silo Finance has integrated Chainlink Price Feeds on Ethereum mainnet. By integrating the industry-leading decentralized oracle network, Silo Finance now has access to high-quality, tamper-proof price feeds needed to help ensure proper financial operations. Specifically, this integration helps assure users that Silo Finance lending markets will run smoothly and seamlessly, even during volatile market conditions.
Our initial integration involves the use of 8 Chainlink Price Feeds and 38 more are yet to come. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
As a risk-isolating lending protocol, Silo Finance seeks to create lending markets for all digital assets without sacrificing security. To that end, each market (or ‘silo’) consists of only three assets: a base asset such as CRV and two bridge assets — ETH and the protocol’s native stablecoin XAI. Depositors in one market can borrow from another using the bridge assets while remaining exposed to the risk of one token asset. This novel mechanism positions Silo Finance as the home for all types of tokens, from blue chips to yield-bearing tokens to synths.
To help secure our risk-isolated lending markets, we needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features such as:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
- Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.
“Integrating Chainlink Price Feeds was integral to realizing our vision of secure lending markets that support all token assets. As Silo Finance’s primary digital asset price provider, we look forward to expanding our use of Chainlink Price Feeds as our protocol supports more markets and chains.” — Aiham Jaabari — Founding Contributor
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.
Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.
About Silo Finance
Launched in August 2022 on Ethereum, Silo Finance is a decentralized, non-custodial lending protocol that implements risk-isolated lending markets. Silo Finance flips the traditional shared-pool lending model on its head by creating one lending pool for one token asset, connecting all pools via protocol-wide Bridge Assets. As a result, any token asset can be collateral to borrow another, opening doors to creating borrow/lend markets for all assets where risk is confined to one market at a time.
About Silo Finance:
- Website: https://www.silo.finance/
- Lending app: http://app.silo.finance/
- Documentation: https://devdocs.silo.finance/
- Twitter: https://twitter.com/SiloFinance
- Discord: https://discord.com/invite/silo-finance
