The team at Stella, a leveraged strategies protocol with 0% cost to borrow — announced that it has integrated Chainlink Price Feeds on Arbitrum mainnet.
By integrating the decentralized oracle network, Stella has access “to high-quality, tamper-proof price feeds needed to help power lending and leveraged strategies.”
This will provide users “with stronger assurances that DeFi strategies are underpinned by tamper-proof market data.”
Stella’s initial integration “involves the use of the following Chainlink Price Feeds: ETH/USD, ARB/USD, USDT/USD, USDC/USD, and BTC/USD.”
Stella says they “chose Chainlink because its infrastructure is seamless to integrate and time-tested in production.”
Chainlink already “helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.”
Stella’s mission is “to redefine how leveraged DeFi works. DeFi needs a good leverage system in order to drive more usage to DEXs and money markets, the fundamental building blocks of DeFi.”
With the growing usage of these fundamental primitives, new innovations and more protocols can arise and “tap into the deep liquidity and robust foundation.”
Stella’s zero-cost borrow system and Pay-As-You-Earn model, “for the first time, align incentives between borrowers and lenders, presenting a new and better way for leveraged DeFi — a way where one party does not lose when the other party gains.”
In order to help secure DeFi strategies, Stella needed “access to fresh asset prices that are supplied directly on-chain in a highly reliable manner.”
Fair market asset prices should “reflect a volume-weighted average from all trading environments.” Thus, it is best to “make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain.”
After reviewing various oracle solutions, Stella integrated Chainlink Price Feeds because they provide a multitude of critical features such as:
- 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 of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
- 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 of 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 System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.
