Linear Finance Boosts Protocol Security by Upgrading to Chainlink Price Oracles on Binance Smart…

Sep 22, 2021 · 5 min read · cat

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Linear Finance is pleased to announce that we have successfully upgraded our protocol’s oracle mechanism to Chainlink Price Feeds. Our users now have enhanced security and reliability guarantees that all Linear Finance synthetic assets will be minted, swapped, redeemed, and liquidated according to the most up-to-date and precise global market prices. This enables users to trade various cryptocurrencies and market indices with increased confidence, knowing that their funds are secured by an oracle infrastructure with a historical track record of reliability, even during times of high gas prices and extreme network conditions.

“We saw a need to scale our oracle solution to meet increased demand in data security from the growing platform adoption. The Chainlink integration is implemented in an authentic and trustless manner, instilling greater confidence in the Linear community during extreme market volatility,” said Drey Ng, Co-Founder of Linear Finance. “Chainlink Price Feeds ultimately provide our users with more robust assurances that all on-chain functions will consistently be in total synchronization with global financial markets.”

Our integration encompasses 18 different Chainlink Price Feeds, with the ability to quickly and securely scale up to more assets in order to meet our platform demand. All of these Chainlink Price Feeds are running natively on Binance Smart Chain (BSC), enabling us to consume them at higher frequencies and at lower-costs, without cross-dependencies on other chains. This will lead to an enhanced trading experience that everyone can take part in.

Each Chainlink-powered decentralized oracle network supplies price feeds that have full market coverage, making them inherently resistant to API failures, flash crash outliers, and data manipulation attacks like those executed using flash loans. Chainlink achieves this by sourcing data from numerous premium authenticated APIs without introducing centralized points of failure that put user funds at risk. With Linear Finance continuing to scale in total value locked (TVL), Chainlink provides the type of time-tested and robust oracle infrastructure needed to further scale our security of user funds.

Securing Linear Finance With Chainlink Price Feeds.

As a synthetic asset platform, Linear Finance requires price reference data every time a user mints, swaps, and redeems their synthetic assets, as well as for our liquidation mechanism to utilize when monitoring users’ collateralization ratios. Given the importance of price data to nearly all functions of Linear Finance, we need price data that is both accurate and delivered on-chain in a secure and reliable manner.

Doing so requires that the price data reflects global, volume-weighted exchange rates and is fully resistant to centralized infrastructure failures such as downtime or oracle manipulation. Any such issue would be extremely detrimental to the Linear Finance protocol, especially as we scale to secure greater value for our users and roll out our planned thematic Digital Traded indexes, which provide users exposure to novel baskets of assets with varying exposure compositions.

After in-depth examination of our oracle mechanism, we identified Chainlink Price Feeds offering the best solution in the market in terms of providing users with the extreme degrees of reliability, transparency, and decentralization. Some of the notable features of Chainlink Price Feeds include:

High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators like BraveNewCoin and Kaiko via authenticated APIs, resulting in price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are resistant to exchange downtime and price outliers.
Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record for reliability, even during extreme network conditions and infrastructure outages.
Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, producing strong protections against downtime and tampering by either the data provider or oracle network.
Economy of Scale — Chainlink Price Feeds benefit from an economy of scale effect, where increasing adoption allows multiple projects to collectively use and fund shared oracle networks to fetch commonly required datasets. This allows DeFi projects to get premium data quality and robust oracle security for a fraction of the total cost.

We’re excited to integrate Chainlink Price Feeds to upgrade the security of our platform, and look forward to continued collaboration to expand our support for new and innovative synthetic assets in the future.

About Chainlink

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.

About Linear Finance

Linear Finance is a cross-chain compatible, decentralized delta-one asset protocol that allows users to get synthetic exposure to various assets, including cryptocurrency, commodities, and market indices. Users can utilize our cross-chain swap functionality to instantly swap assets across leading blockchain environments and DeFi protocols with unlimited liquidity and zero slippage.

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