Venus Upgrades its Oracle Mechanism to Chainlink Across All Lending Markets
Following increase in TVL, Venus replaces previous oracle solution with Chainlink network to achieve maximum data feed security
Today, Venus, a money market and synthetic stablecoin protocol built on Binance Smart Chain (BSC), with over $11 billion total value locked (TVL), has now fully upgraded to Chainlink as its sole oracle solution. With Venus, lenders can provide liquidity on various assets to earn interest via an algorithmic money market. Said market is powered by price data from oracles, which determines the value of underlying collateral lent and borrowed by users, enabling both loan issuance and loan integration. Going forward, lending markets on the Venus protocol will leverage Chainlink to price collateral during both loan issuance and liquidation processes, ensuring Venus is always fully collateralized and referencing fair market prices.
“As the market leader in providing lending 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 always 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.” — Joselito Lizarondo, Founder Venus Protocol and CEO of Swipe Wallet.
As the most widely used and time-tested decentralized oracle network across all blockchains, Chainlink provides the much needed security, reliability, and data quality needed to scale Venus’ rapidly growing ecosystem as the protocol’s TVL increases. Already securing over $15 billion worth of smart contracts across multiple blockchains, Chainlink has become the industry
standard for oracles thanks to its high quality data, proven reliability, decentralized security, and proven performance.
Chainlink Co-Founder Sergey Nazarov said, “We’re thrilled to be helping secure Venus and enabling a fair and transparent lending environment on BSC. As the value secured by Venus has continued to grow, and after conducting extensive review of their DeFi contracts’ security, they’ve rightly chosen to upgrade their oracle mechanism to something more secure. We’re seeing a consistent trend where, even if an application builds its initial version using a less secure oracle mechanism, for the protocols like Venus that succeed far beyond all others, their need for security and reliability guarantees also grows, leading to greater due diligence about their oracle’s security, which in almost every case has led these teams to use Chainlink.”
The Chainlink integration gives Venus access to price feeds that are secured by numerous independent, security reviewed node operators that source high quality data from numerous premium off-chain data aggregators. These feeds are also decentralized at both the data source and oracle network level, and can be independently monitored on-chain and verified within reputation frameworks, proving the quality of their performance and the strong crypto-economic incentives backing them.
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.
Venus Protocol is an algorithmic-based money market system designed to bring a complete decentralized finance-based lending and credit system onto Binance Smart Chain. Venus enables users to utilize their cryptocurrencies by supplying collateral to the network that may be borrowed by pledging over-collateralized cryptocurrencies. The difference of Venus from other money market protocols is the ability to use the collateral supplied to the market not only to borrow other assets but also to mint synthetic stablecoins with over-collateralized positions that protect the protocol. Venus utilizes the Binance Smart chain for fast, low-cost transactions while accessing a deep network of wrapped tokens and liquidity.
Visit https://venus.io/ to learn more.