Chainlink Price Feeds have been integrated into the Ethereum mainnet, as was revealed today by Euler Finance, a non-custodial lending and borrowing platform. This was completed in preparation for the next Ethereum Merge, which is scheduled to take place between September 13 and September 15. The Euler protocol is designed to minimize potential risks and places a significant focus on the security of user funds. Users have access to a novel strategy for the lending and borrowing markets thanks to the innovative risk management framework that it offers.
By incorporating Chainlink Price Feeds, Euler now has access to data that is at the forefront of the industry and supports the absolute security and dependability that consumers demand of Euler’s lending and borrowing functions. Since Chainlink has already assisted in the security of leading DeFi protocols, which are accountable for the value of smart contracts totaling tens of billions of dollars, this integration further protects customers from losing their funds.
Leveraging The Reliable And Decentralized Market Data
Chainlink was selected as the solution to alleviate concerns over TWAPs following the merger. There is sufficient evidence to imply that the validation process that Ethereum implemented after the merging makes multi-block attacks more likely than they were on Ethereum before the Merge. In addition, the Chainlink interface makes it possible to make direct deposits of stETH, which is Lido Finance’s version of staked Ethereum.
Lenders on Euler will profit from higher yield created by borrowers as a result of the platform’s position as one of the first on-chain venues for stETH borrowing. By relying on Chainlink’s premier oracle network, Euler will be able to take advantage of the dependable and decentralized market data that Chainlink supplies to DeFi protocols. This will allow Euler to keep its robust security and high availability even in the face of unforeseen occurrences such as exchange outages, flash crashes, and data manipulation attempts via flash loans.
According to Michael Bentley, the Chief Executive Officer of Euler Labs, price data is the “lifeblood” of all DeFi lending protocols, and Euler is not an exception. He is of the opinion that Chainlink Price Feeds, in their capacity as the best-in-class price data infrastructure for smart contracts, have a successful track record in terms of ensuring the safety of lending procedures.
Securing Lending Protocols With Chainlink
Chainlink is the industry standard for developing, accessing, and selling oracle services, which are required to run hybrid smart contracts on any blockchain. Chainlink oracle networks make it possible for smart contracts to securely connect to any external API and leverage off-chain computations in order to enable feature-rich applications. Chainlink is presently protecting tens of billions of dollars across the decentralized finance industry, the insurance industry, the gaming industry, and other important businesses. Additionally, Chainlink provides a common gateway to all blockchains for global enterprises and top data suppliers.
Euler is a protocol for capital-efficient permissionless lending that does not require the use of a trusted third party and enables users to either earn interest on their crypto assets or hedge against the risk of turbulent market conditions. In the world of decentralized finance, Euler introduces a number of firsts, including permissionless lending markets, protected collateral, reactive interest rates, multi-collateral stability pools, MEV-resistant liquidations, sub-accounts, risk-adjusted loans, and much more.