Konomi Integrates Chainlink Price Feeds to Secure its DeFi Solutions for the Polkadot Ecosystem
We are proud to announce that Konomi, a Substrate-based blockchain, has natively integrated the widely used Chainlink Price Feeds on testnet via the Chainlink Oracle Pallet. By integrating Chainlink Price Feeds as our go-to oracle solution, we can secure critical functions within our decentralized liquidity and money market protocol, such as issuing loans and triggering liquidations based on fresh, accurate, and tamper-proof asset prices.
We recommend that all decentralized applications (dApps) launching on Konomi and needing price oracles to use Chainlink Price Feeds. Not only is Chainlink the most provably reliable oracle solution during periods of extreme network congestion and market volatility, but it’s Price Feeds are backed by industry leading data quality that’s proven to be flash loan resistant. Hence, why Chainlink is counted on by leading decentralized finance (DeFi) applications to secure tens of billions of dollars, and makes for a perfect fit to support Konomi’s DeFi offerings.
Powering Konomi’s DeFi Ecosystem With Chainlink
Konomi is an independent blockchain built using the Substrate development framework. Konomi has a built-in liquidity and money market protocol that aims to support cross-chain asset management within the Polkadot ecosystem. Through Konomi, users can borrow cross-chain assets and lend cross-chain liquidity across Polkadot dApps.
To support our cross-chain decentralized money markets, we need financial market data when performing on-chain functions, most notably asset prices to calculate the value of outstanding loans and users’ collateral. However, blockchains don’t inherently generate global asset prices nor do they have built-in capabilities to call external APIs. Thus, we required an additional piece of infrastructure known as an oracle to fetch external price data and deliver it on to the Konomi Network so it can be referenced during smart contract execution.
After exploring various oracle solutions, we selected Chainlink because it is the industry-leading oracle provider with the most time-tested and an easy to integrate solution. Moreover, Chainlink already offers pre-built price oracles for a wide range of assets, removing the need to spend time and resources on building our own from scratch.
Some of the unique features of Chainlink Price Feeds that stood out include:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
- 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 high gas prices and infrastructure outages.
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
- Reputation — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.
Exploring the Technical Details of the Integration
To gain access to Chainlink’s real-world market data, we first installed the Chainlink Oracle pallet from this GitHub repository. After setting up the Chainlink pallet, we integrated it with the existing Chainlink Price Feed, which acts as a constantly publishing price oracle that automatically updates every time there is a small price deviation in the previous update.
Since Konomi is a downstream service, we needed to consume the feed value by writing an adapter. While Chainlink Price Feeds are known to be highly precise and reliable, as an additional security precaution we have implemented a price trait that checks if the price is valid. If the price is not valid, then any transaction using that price won’t be executed.
Providing assets with reliable price data is essential to the rapid innovation and longevity of the Konomi ecosystem. We look forward to launching our Chainlink integration going live on mainnet and eventually expanding to include additional price feeds in the future to support our growing demand.
“Chainlink provides the more secure, reliable, and precise source of real-world market data to power key functions for our decentralized liquidity and money market solutions,” stated Ariel Ho, Founder of Konomi. “So far, integrating Chainlink has been an exceptionally straightforward process, allowing us to accelerate our launch date and bring the Polkadot ecosystem decentralized money markets.”
About Konomi Network
Konomi is a decentralized money market protocol built using Polkadot’s Substrate. Konomi is working to provide active money markets across the entirety of the Polkadot ecosystem, as well as expand and integrate into cross-chain networks. By introducing a fluid market for cross-chain crypto assets, Konomi hopes to provide an overall better user experience that is accessible regardless of the native network the end user prefers.
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper.