Yeti Finance utilizes Chainlink Price Feeds on Avalanche mainnet. By integrating the industry-leading decentralized oracle network, Yeti Finance has access to high-quality price feeds with tamper prevention measures which is key in ensuring protocol solvency by enabling the accurate calculation of borrowers’ collateral value.
Chainlink was selected as the 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.
Yeti Finance is a borrowing protocol on Avalanche that allows users to borrow against their portfolio of LP tokens, staked assets such as sJOE and sAVAX, and yield-bearing stablecoins. Yeti Finance also auto-compounds farming rewards on deposited assets on behalf of users. Borrowers on Yeti Finance mint YUSD, a hard-pegged and fully decentralized stablecoin that requires a minumum of a 105% collateral ratio.
In order to help secure collateral in our leveraged lending protocol, we 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, we needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, we 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.
“It’s very difficult for on-chain lending platforms to function securely without Chainlink Price Feeds. By integrating the leading source of decentralized price data, Yeti Finance is telling users that the protocol settles for nothing less than the best infrastructure in the ecosystem.” — RoboYeti
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.
About Yeti Finance
Yeti Finance is a next-gen borrowing protocol built on Avalanche. This innovative protocol enables users to borrow against their entire portfolio of crypto assets, while continuing to earn the rewards generated from deposited assets.
Unlock deep liquidity, borrow at the lowest collateral ratios, and borrow against your entire portfolio to gain better protection against liquidations.