LendeXe Finance, a prominent player in the Web3 ecosystem, has taken a significant step towards enhancing the security and performance of its DeFi functionality. In an official announcement, the platform revealed that it has integrated Chainlink Price Feeds into its existing infrastructure. The integration involves the use of various Chainlink Price Feeds, such as BTC/USD and ETH/USD, among others, which will help provide reliable and accurate market data to the LendeXe platform.
The decision to collaborate with Chainlink was based on the platform’s time-tested infrastructure and seamless integration process, making it a perfect fit for LendeXe’s needs. As a well-established oracle solution, Chainlink has already proven its ability to secure leading DeFi protocols worth tens of billions of dollars in smart contract value. Chainlink’s cutting-edge technology ensures robust security and high availability, even amidst unexpected events such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
Chainlink is widely regarded as the industry-standard Web3 services platform, responsible for facilitating trillions of dollars in transaction volume across various industries, including DeFi, insurance, gaming, and NFTs, among others. As the prominent decentralized oracle network, Chainlink provides developers with access to real-world data and off-chain computation across any blockchain, allowing them to build feature-rich Web3 applications seamlessly.
The integration of Chainlink Price Feeds is expected to provide LendeXe Finance with enhanced security and performance, enabling the platform to offer its users an unparalleled DeFi experience. The official announcement from the LendeXe Finance team reads: “Without access to robust and reliable price data feeds, it’s impossible to build secure, feature-rich DeFi functionality. That’s why we chose to use Chainlink Price Feeds — the undisputed industry standard price oracle solution in DeFi.”
The Web3 Ecosystem Redefining Stability in DeFi
LendeXe Finance is a Web3 ecosystem that has a number of cutting-edge applications for DeFi. Stablecoins, one of the most extensively used products in Web3, serve as the foundation of this comprehensive ecosystem for the liquidity of digital assets. The lessons of history have demonstrated that a lot of stablecoins are not actually stable. This was mostly attributable to the fact that a variety of stablecoins were backed by tokens that were subject to price fluctuations.
The XSD Stablecoin is the primary focus of LendeXe’s long-term strategy. Since it is backed by three of the world’s largest stablecoins, XSD is a secure stablecoin. These other stablecoins are USDT, USDC, and BUSD. XSD also has built-in safety mechanisms, which can help avoid problems from occurring in the event that USDT, USDC, or BUSD go off-peg. By the conclusion of the fourth quarter of 2023, the XSD Stabilizer will have a total of at least 10 stablecoins in order to be able to scale to its full potential for the benefit of XSD users.
As a result, LendeXe provides its users with a number of different options for minting XSD Stablecoins. In addition, XSD may serve as collateral for the LendeXe Decentralized Lending Protocol, as well as for the Ultimate Loan (a loan for 1.5 times the value of your collateral), and the soon-to-be-introduced Interest Free Loan (IFL). All of the LendeXe solutions have the same overarching objective, which is to provide users with the highest possible level of security.
This will be done by simultaneously unleashing liquidity through three primary levers. This involves the use of Dynamic Lending, which allows for the lending of a variety of digital assets in order to access interest or the borrowing of various digital assets up to a preset level. In addition, Ultimate Loan (UL) adds LEXE as collateral to obtain XSD as debt, and Interest-Free Loan adds BTC, ETH, or BNB as collateral to obtain LXD as debt.
Chainlink Price Feeds Bring Critical Features to LendeXe Finance
LendeXe Finance required access to up-to-date asset prices that were provided directly on-chain in a manner that was highly reliable so that it could more accurately calculate borrowing limits, liquidation levels, and other mission-critical services needed within the LendeXe Finance ecosystem, such as informing the XSD Stabilizer. Prices of assets on the fair market need to represent a volume-weighted average of prices fetched in all trading contexts.
So, in order to retrieve aggregated price data from off-chain, LendeXe Finance required to make use of an oracle network and then transport it on-chain so that it could be consumed by its application. LendeXe Finance integrated Chainlink Price Feeds after conducting research on a variety of oracle solutions. This was done since Chainlink Price Feeds offer a wide range of essential capabilities.
For example, Chainlink Price Feeds obtain their data from a wide variety of premium data aggregators, which results in price data that is compiled from the trading activity of hundreds of exchanges, weighted by volume, and free of outliers and wash trading. In addition to this, Chainlink’s data aggregation strategy creates more accurate global market prices that are naturally immune to the errors or manipulation of any one exchange or small set of exchanges.
In addition, Chainlink Price Feeds are protected by oracle nodes that are independent, have their security assessed, and are resistant to Sybil attacks. These nodes are operated by renowned blockchain DevOps teams, data providers, and traditional businesses. Chainlink nodes also have a proven track record of reliability, which holds true even in the face of rising gas prices and disruptions in infrastructure.
Chainlink Price Feeds are likewise decentralized at the levels of the data source, the oracle node, and the oracle network, providing powerful protections against outages and manipulation by either the data provider or the oracle network. In addition, Chainlink offers a strong reputation architecture and a collection of on-chain monitoring tools that let users independently confirm the historical and current effectiveness of node operators and oracle networks.
Additionally, Chainlink offers global enterprises a universal gateway to all blockchains, making it an essential tool for businesses seeking to take advantage of the benefits of blockchain technology. Recognizing the advantages of Chainlink, LendeXe Finance decided to incorporate Chainlink Price Feeds into its platform. By doing so, LendeXe aims to leverage Chainlink’s cutting-edge technology to enhance the security and performance of its DeFi functionality.
