Wise Token Will Integrate Chainlink Price Feeds to Secure its New Lending and Borrowing Platform
Following the success of its ETH and BNB liquidity pool events, WiseSoft announces an upcoming integration with the widely used and trusted Chainlink Price Feeds, delivering on another of its roadmap promises — having a secure and reliable decentralized oracle mechanism to power its DeFi platform. The Wise lending and borrowing smart contract will utilize Chainlink Price Feeds to determine the real-time value of assets, enabling it to issue fair market loans and secure its liquidation mechanism.
WiseSoft selected Chainlink Price Feeds because they are time-tested and easy-to-integrate oracle infrastructure that provides high-quality data feeds backed by robust decentralized security. Chainlink already secures billions of dollars in value across DeFi, with proven resistance to a variety of unexpected situations like API downtime, flash crash outliers, and data manipulation attacks like flash loans.
Understanding Wise and Its Integration of Chainlink
Wise tokens are asset-backed utility tokens on Ethereum and Binance Smart Chain serviced by a full suite of financial tools, such as Staking, Lending, Leveraged Lending, Borrowing, Liquidity Providing, and Profit sharing, to name a few. The Wise platform’s flagship release was ETH and BNB-backed ownerless liquidity pools, which offer a safe way to store value and earn interest. In addition to staking pools, Wise will soon offer a lending and borrowing service that allows WISE and WISB token holders to use interest-earning staked assets as collateral for borrowing almost any cryptocurrency/stablecoin.
The Chainlink integration is an instrumental upgrade to support Wise’s ecosystem expansion, as it connects Wise’s lending and borrowing smart contract to on-chain price feeds that are up-to-date, accurate, and tamper-proof. By leveraging Chainlink Price Feeds, Wise can perform critical on-chain functions like determining the size of a loan from user-supplied collateral and consistently checking to make sure loans are fully collateralized.
Chainlink Price Feeds are pre-built decentralized oracle networks that maintain price reference contracts, which store the most recent global prices of various assets and can be called by smart contracts in a single function. Chainlink Price Feeds provide several attractive features to DeFi projects, 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 from outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are resistant to data source failures.
- 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 for 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.
- Economy of Scale — Chainlink Price Feeds benefit from an economy of scale effect, where increasing adoption allows multiple projects to collectively use and fund shared oracle networks to fetch commonly required datasets. This allows DeFi projects to get premium data quality and robust oracle security for a fraction of the total cost.
From the Chainlink integration, Wise users will be able to securely borrow against specific “whitelisted” tokens and safely lend various crypto-assets in exchange for interest. Further, those wishing to lend can leverage their existing tokens to lend multiple times their initial contribution as a means of earning additional interest (akin to leveraged loans). The proper functioning of these processes is highly dependent on Chainlink’s fresh, precise, and manipulation-resistant price data being available on-chain for reference by the Wise Lending/Borrowing contract.
The WiseSoft team believes that integrating with Chainlink is an integral step in its evolution — allowing the team to set new standards and expectations for decentralized finance (DeFi), such as returning 100% of the ecosystem profits back to holders.
“Integrating with Chainlink, the most time-tested and provably reliable oracle service in the blockchain industry, is a crucial step for our team if we are to successfully introduce our lending and borrowing contract. This is one of many major developments coming to the Wise ecosystem in 2021, and probably the development I am looking forward to the most,” says Peter Girr, WiseSoft founder & CEO.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
Wise Token is setting a new, ethical standard for DeFi. It is a fairly launched, fairly distributed, fully decentralized, crypto-backed, and highly liquid utility token. The Wise team is building a full suite of DeFi products including staking, borrowing, lending, LPs, DEX swaps, and leveraging options. In line with our team and community’s ethos, this is a 100% efficient ecosystem and all of the ecosystem’s profits go back to Wise Token holders.
The WiseSoft team, with the help and guidance of the WISE community, is dedicated to making the future of finance completely trustless. For any questions, email email@example.com or join our Telegram channel: https://t.me/WiseToken.