The full implementation of Chainlink will grant Venus users a series of benefits.
A Single Provider
Venus Protocol has announced that it is now fully upgraded to Chainlink. Venus had earlier dropped the VIP-23 proposal to allow for an upgrade on ChainLink as its oracle solution will provide a robust infrastructure to secure critical lending/borrowing functions and push prices to higher levels. The upgrade will allow Venus to leverage on Chainlink to create a more secure, trusted, and liquid market on the Binance Smart Chain (BSC).cdn.embedly.com/widgets/media.html?type=text%2Fhtml&key=96f1f04c5f4143bcb0f2e68c87d65feb&schema=twitter&url=https%3A//twitter.com/venusprotocol/status/1392446578082729989&image=https%3A//abs.twimg.com/errors/logo46x38.png
Venus is a synthetic money market and stablecoin protocol built on the BSC. With its upgrade to Chainlink as an oracle solution, Venus has now leveraged Chainlink to its markets to its price collateral during both loan issuance and liquidation processes. The VIP 213 proposal deployed for the upgrade in Chainlink will provide security and reliability to the Venus Protocol allowing for the timely update of prices and automation of the Venus Market.
Importance of ChainLink to the Venus Protocol
Built by crypto wallet and debit card company Swipe, Venus Protocol is the first collateral loan platform on BSC. With Venus, lenders can provide liquidity on various assets and earn interest in LP, there is also an option to take loans in other currencies or mint VAI— the first decentralized stablecoin built on BSC, Venus’s stablecoin. One of the benefits of running on BSC is that users will be able to get fast, low-cost transactions while being able to access a deep network of wrapped tokens and liquidity. The way the Venus market works requires price data to determine a fully algorithmic money market such as in loan issuance and loan liquidations. Every time a user requests a loan, a fully algorithmic market is needed to determine the loan size and underlying collateral. Venus also needs to have its prices aggregated and price adjusted to suit market realities, which the BSC does not allow, hence the need for Chainlink.
According to Joelito Lizarondo, founder of Venus Protocol and the CEO of Swipe Wallet:
“As the market leader in providing credit to the BSC ecosystem, it was critical that we scale up our security by upgrading to Chainlink as a means of thoroughly protecting our users’ funds and guaranteeing they alway get fair market prices. Not only are we able to leverage Chainlink’s time-tested security, but it’s native operation on BSC allows us to get consistently fresh data for a much lower price.”
The need to utilize Chainlink’s oracle solution is founded in a desire to provide a more robust and proven infrastructure suitable for Venus’ lending/borrowing functions. The integration with Chainlink is also essential as Venus has the most Total Value Locked (TVL) on BSC, so a superior oracle was needed to increase efficiency. With the upgrade to Venus, users can now expect high-speed data from several premium off-chain data aggregators like BraveNewCoin, plus a high level of security and decentralization.
Chainlink is an oracle protocol on the BSC, providing tamper-proof data and transactions. Chainlink enables developers to connect to any blockchain in a secure way and to power universally connected smart contracts. Chainlink is utilized by organizations to get reliable, secured and trusted data feeds.
About Venus Protocol
Venus is a synthetic money market and stablecoin protocol built on the BSC. With its upgrade to Chainlink as an oracle solution, Venus has now leveraged Chainlink to its markets to its price collateral during both loan issuance and liquidation processes.
Their algorithmic-based money market system is built on the BSC to ensure a completely decentralised lending and credit system in DeFi. With Venus, users can use the collateral supplied to the market to borrow other assets and to mint synthetic stablecoins with over-collateralized positions that protect the protocol.
Source : bsc.news
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