DeFiEdge has announced its integration with Chainlink price feeds so as to provide an extra security layer for Uniswap liquidity providers on DeFiEdge.
According to a statement made by the DeFiEdge team, they believe Chainlink has expert experience in security and dependability in Web3 development. And since they (DeFiEdge) aim to bring security to their protocol design, integrating with Chainlink sure is a bright idea.
“Chainlink has a proven track record for security and reliability in Web3, so it only made sense that Chainlink Price Feeds would underpin active strategy management on DeFiEdge.” Said the DeFiEdge team. They added: “We aim to take a security-first approach to the entire protocol design, and Chainlink oracle infrastructure is secure, simple to integrate, and expansive in scope making it an all-inclusive solution for our team.”
DeFiEdge Integrates With Chainlink Price Feeds
DeFiEdge has now integrated with Chainlink Price Feeds to help bring an additional security layer to Uniswap liquidity providers on DeFiEdge. DeFiEdge is a decentralized asset management protocol particularly designed for Uniswap v3 liquidity providers, this protocol helps connect liquidity providers scavenging for higher capital efficiency with expert strategy managers who will proactively manage their positions on UniswapV3.
One thing to note is that DeFiEdge does not give strategy managers full permission over fund management, liquidity providers can approve disclosure to some of their assets and also their Uniswap v3 pools. Liquidity providers can also choose at any given time to withdraw their funds or deposits without any restrictions.
According to DeFiEdge, by integrating with Chainlink – the industry-leading decentralized oracle network, they can now have access to its decentralized, fair-market price data feeds, which DeFiEdge will now use as a significant layer of security at the protocol level.
Particularly, now that DeFiEdge has integrated with Chainlink, strategy managers can only deploy effective strategies for Uniswap v3 pools if the asset pairs are also supported by Chainlink Price Feeds. This benefit alone will help strategy managers make bright decisions on individual pools by leveraging a competitive source of truth on wider market prices.
Why DeFiEdge Integrated With Chainlink
First of all, Chainlink price feeds seem like a very good option for DeFiEdge. The issue DeFiEdge is facing in Uniswap v3 liquidity pools of the native AMM price of the assets being defined by the ratio between assets in Uniswap v3 liquidity pools is just a pain in the neck. Strategies of individuals that might seem profitable at first in the exchange are not sustainable when considering broader market prices.
Additionally, this risk also makes flash loans worsened for savvy traders when trying to access a large pool of funds for the least gas fee. However, with DeFiEdge now integrated with Chainlink Price Feeds to act as a backbone for all Uniswap v3 pools available on DeFiEdge, this risk is now reduced, and Chainlink price feeds will continually help provide safeguards for active strategies.
Conclusion
Because Chainlink takes a volume-weighted type of average price across several exchanges to cut off single points of failure and arrive at a fair market price, they are clearly the best option for the best price data solution.
Later in the future, to help leverage advanced trading functionality such as limit orders, DeFiEdge is looking to elevate its keeper solution to Chainlink Keepers which is a secure, reliable, and timely smart contract automation service.
