Yield.Credit Integrates Chainlink Price Feeds on Mainnet to Secure Fixed-Rate, Individualized Lending Markets
Yield is excited to announce that we have integrated Chainlink Price Feeds on mainnet to secure our fixed-rate, individualized lending markets. By integrating the market-leading decentralized oracle network, we are taking a proactive step in hardening the security of our protocol, ensuring our smart contracts consistently reference high-quality decentralized price data that is provably robust even amidst strenuous conditions such as during flash loans and high gas prices.
Our initial integration uses Chainlink Price Feeds to access price reference data on over 30 different crypto pairs, including ETH/USD, LINK/ETH, and AAVE/ETH. This data will be used to accurately and securely determine principal amounts, collateral ratios, YLD borrower rewards, and more, marking a major step in making Yield more decentralized and self-sustaining.
Yield Introduces Fixed Rate, Individualized Lending Markets
Yield is a non-custodial, individualized, fixed-rate lending and incentivized borrowing platform. Individualized in the sense that, unlike virtually every other DeFi lending platform out there, users do not deposit assets into some pool, but rather into isolated contracts specific to their activity. This serves the purpose of:
- Generating undiluted earnings — Since there isn’t a shared pool where interest is spread among various participants, each lender receives the total interest of a repaid loan in its entirety.
- Incentivizing individual borrowers — For every loan a borrower repays, they earn YLD tokens relative to the amount of interest they offered the lender and the amount they borrowed.
- Enabling fixed-rates — At loan creation, interest rates are hardcoded into the smart contract, so there’s no money-market dynamics to worry about; every loan has a fixed and guaranteed interest rate.
- Isolating protocol risk — Funds on our lending protocol are isolated to specific contracts for individual offers, requests, and loans, which means asset risk is taken on by individuals instead of by every single user. Additionally, since there’s not a single large pool of funds sitting in a few separate contracts, there is less incentive for someone to attempt to exploit our smart contracts.
All the interest rates seen on Yield dapp are fixed and guaranteed — what you see is what you get. Yield does not have ever-fluctuating, uncertain “APY” market-rates that are common on many lending platforms today (even those touting “fixed rates”), but instead offers interest rates that are actually fixed and unmoving. For example, if you lend out 1 ETH at 2% interest for 30 days on Yield, you’ll get exactly 1.02 ETH — i.e. +2% — when the borrower repays. The lender will receive the interest payment in its entirety too because it’s individualized to you rather than interest a borrower pays to some pool. But the most interesting part is that every borrower who repays their loan, will earn YLD tokens proportional to the 2% interest paid. You can read more about this here.
Importantly, the Yield platform isn’t limited to ETH either. It supports the most assets of any DeFi lending platform out there, with over 30 crypto assets available and many more to be added.
Why Chainlink Price Oracles
Chainlink is the most secure, reliable, and time-tested decentralized oracle network in the industry, providing smart contracts with access to external data existing outside the blockchain. One of those datasets includes the prices of crypto assets, which Chainlink Price Reference Data Feeds have become widely used for in the DeFi space. Accessing price feeds might seem like a trivial problem, but there’s no way for a contract within Ethereum to know DAI is actually ~$1 without an oracle, let alone the hundreds of other fluctuating crypto-assets. There do exist on-chain oracles today, but they’re arguably a last-resort due to how easily they can be manipulated — flash loans being the worst attack vector, which has been exploited all too often.
Yield uses a litany of Chainlink Price Feeds, as seen here, to fetch the latest prices of assets. The reason for choosing Chainlink over other options is relatively straightforward:
- Security — whatever option we could come up with ourselves is highly unlikely to be as robust and secure as Chainlink’s offering.
- Data Quality — Chainlink pulls data from numerous high-quality data aggregators, providing volume-adjusted prices with market coverage across all relevant CEXs and DEXs. This makes their prices resistant to any one or small set of exchanges, API providers, or oracle nodes going offline or reporting faulty data.
- Time-to-Market — building a custom oracle system would not only be expensive and result in something that’s not nearly as robust, but it’ll also increase the time it takes to release a usable product.
- Extensive feeds — as is evident on https://data.chain.link, there’s an oracle feed for a great many crypto assets, and more keep being added.
You can get started with the Yield dapp here.
“By integrating Chainlink’s decentralized price reference data, we were able to quickly launch 30+ fixed-rate lending markets with strong security and reliability guarantees around the oracle data they consume. Leveraging a ready-made and historically reliable set of oracle networks allowed us to remove any need to provision our own oracle infrastructure and also allowed us to focus solely on bringing a completely new product to DeFi users” — Yield.
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.
Yield is an individualized lending dapp. From the perspective of the traditional, non-crypto world, Yield is essentially Mintos. Naturally, there are significant differences since Yield exists on the Ethereum blockchain and there’s no Yield company behind the scenes. As a non-custodial, defi lending platform, anyone can place a borrow request or lending offer on the Yield dApp and have it funded by the corresponding peer, no questions asked.