- Chainlink publishes an article highlighting 77+ use cases to revolutionize the crypto market.
- Its price feed is used by different platforms for different uses.
Chainlink (LINK) exists as a decentralized oracle network obtaining billions of dollars for live applications across blockchain and other use cases. In a recent article, the team outlined how it revolutionizes the tech industry with real-world use cases. In traditional finance, there has been a lack of universal accessibility to certain financial products.
Chainlink Oracle eliminates this by creating advanced smart contracts to represent financial products and monetary instruments. It also plays a critical role in the blockchain-based money market where users can increase the utility of their crypto holdings.
In this industry, a price feed is required to track the valuation of assets used on the platforms, and Chainlink does exactly that. An on-chain money market protocol that uses its price feeds to obtain the data for different on-chain cryptos such as Aave, Compound, and Liquidity.
From enterprise supply chains to decentralized identity solutions, smart contracts are transforming societal interactions by enabling transparent and trust-minimized transactions. pic.twitter.com/4omc43INHW
— Chainlink (@chainlink) April 16, 2023
For Decentralized Stablecoins, assets like DeFiDollar use Chainlink price feeds to keep track of the price of underlying assets such as sUSD, USDT, DAI, and USDC. In Futures, the Chainlink price feed is utilized by Lyra and MCDEX to power perpetual contracts.
By using Chainlink oracles, these protocols are able to ensure the solvency of their platform by having access to real-time price data for both determining when liquidations should occur and dynamically setting the funding rate to maintain net neutral exposure.
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Chainlink price feeds in Power Proof of Reserve
As stated in the article, BitGo’s WBTC and Ren Protocol’s renBTC uses Chainlink to power Proof of Reserve reference feeds. These Proof of Reserve reference feeds provide DeFi protocols with the information needed to autonomously verify collateral reserves and ensure that users’ funds are protected during under-collateralization events. Through the LINK’s Proof of Reserve, smart contracts autonomously audit the collateralization of real-world assets-backed tokens.
Examples of this are the Paxos Proof of Reserve for PAX and PAXG as well as the TrustToken Proof of Reserve for TUSD. The latter provides DeFi applications with data regarding the true amount of US dollars backing the stablecoin TUSD held by TrustToken’s off-chain escrowed bank accounts as reviewed by Armanino, an independent top-25 auditing firm in the United States.
This collateralization data can be checked against the total amount of circulating TUSD tokens on various blockchains, as reported by the complementary TUSD Proof of Supply feed, to determine the collateralization of TrustToken’s tokenized USD.
In crypto payment, Alchemy and Paycoin operate as platforms that use LINK’s price feeds to determine exchange rates. This enables users to pay in different kinds of cryptocurrencies while receivers receive their preferred assets. In salary payment, the Price Feeds can be used to calculate the exact amount of crypto revenue while maintaining its USD value per payout.
In addition, Chainlink’s VRF is used by on-chain gaming projects on the Polygon sidechain such as Aavegotchi, to effectively mint Aavegotchi NFTs. In Sports and Esports, Augur uses Chainlink Oracle to power its Turbo prediction markets.
Within the article are more than 77 use cases of Chainlink.
Ultimately, Chainlink provides the necessary developer tools required to construct any type of oracle network, such as using multiple data sources, multiple oracle nodes, various aggregation methods, payment penalties, reputation services, and visualization tools.
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