MatrixETF Is Integrating Chainlink Price Feeds to Help Secure its Decentralized ETF Ecosystem
We’re excited to announce that MatrixETF — a cross-chain, decentralized ETF platform powered by Solana — is integrating Chainlink Price Feeds on Solana. By integrating the industry-leading decentralized oracle network, MatrixETF will have access to high-quality, tamper-proof price feeds needed to create a stable, safe, and efficient decentralized ETF product. This will provide our users with stronger assurances that a decentralized, automated, personalized, and diversified portfolio can provide stable passive incomes.
We chose Chainlink as our go-to oracle solution 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.
MatrixETF is the next generation of decentralized ETF platforms, supporting cross-chain functionality. According to the overall performance of the cryptocurrency market, MatrixETF will launch a series of conceptual ETFs to track the qualified tokens in the blockchain and DeFi industry.
Most ETF products on MatrixETF are supported by a basket of encrypted assets, which can be subscribed and redeemed at any time. These encrypted assets will participate in the interaction based on existing DeFi protocols, such as Compound lending, Uniswap liquidity mining, etc., and generate Vault returns, which will be returned to the users holding ETF products as additional income for them.
MatrixETF will leverage Chainlink Price Feeds to take the advantage of decentralized oracle networks, helping ensure that the data source itself reflects global market prices aggregated from across CEXs and DEXs. This will help provide our smart contracts with accurate on-chain prices when the users Mint or Redeem ETFs.
In order to help secure our ETF products and to make sure they can be operated well and normally, we need 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, we needed to make use of an oracle to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, we selected 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.
“Especially for the DeFi ecosystem, the function of the price oracle is significant. As we know Chainlink is always one of the reliable oracles which can provide stable and accurate token price data. We can avoid the attack from flash loans and get more development convenience by integrating with Chainlink. Thanks for it, we will focus our attention on ETF product development.” –stated Louise L., Co-Founder of MatrixETF
About Chainlink
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains. Learn more about Chainlink by visiting chain.link or read the documentation at docs.chain.link. To discuss an integration, reach out to an expert.
About MatrixETF
MatrixETF is the next generation of decentralized ETF platform to run the cross-chain, whose goal is to establish a decentralized, automated, personalized and diversified portfolio for users, as well as help users easily enjoy long-term, stable and efficient financial services.
