Chainlink price feeds are now securing crypto-backed fiat loans
Fintech firm YouHodler is now using industry-leading oracle solution Chainlink to increase the transparency and reliability of its backend pricing mechanisms, it said in a release shared with CryptoSlate.
The initial integration involves using Chainlink Price Feeds to access high-quality decentralized exchange rates on various cryptocurrency price pairs, which are then referenced in our lending product when determining users’ borrowing limits and checking the collateralization of outstanding loans.
The firm said it chose to integrate Chainlink as it’s the most time-tested decentralized price feed solution in the industry and already helping secure tens of billions of dollars for hundreds of different applications.
Chainlink Price Feeds have extensive market coverage, robust and transparent infrastructure, and low latency updates to help ensure the YouHodler platform is always providing users with verifiably fair and current market rates.
This integration helps YouHodler further its vision of a hybrid CeDeFi platform optimized for ease of use yet offering better transparency than traditional FinTech platforms.
What Chainlink secures for YouHodler?
YouHodler is an innovative FinTech platform designed for beginners and expert users who are looking for a secure alternative to traditional investments in the current low-yield, high-inflation global economic environment. It offers high-yield crypto-savings accounts, crypto-backed lending with fiat, and secure fiat-to-crypto and crypto-to-crypto conversions.
YouHodler supports over 30 popular cryptocurrencies and tokens as collateral for crypto-backed lending, including BTC, ETH, SUSHI, UNI, COMP, LTC, XLM, SNX, HT, REP, and more.
Using Chainlink Price Feeds provides new opportunities to improve the reliability and auditability of the data we use to trigger key backend processes like issuing new loans and liquidating under-collateralized loans—all without sacrificing data quality or security.
This means YouHodler has effectively outsourced the rates users receive when taking on crypto-backed fiat loans, leading to more auditability when compared to more opaque traditional FinTech and CeFi platforms.
“With Chainlink Price Feeds, we now have a more reliable and transparent backend pricing mechanism, ensuring our crypto-focused lending product consistently reflects current market prices in a manner any user can independently verify as fair,” stated Ilya Volkov, CEO of YouHodler.
“Integrating Chainlink Price Feeds marks a key step in creating a hybrid FinTech platform the leverages the advantages from both centralized and decentralized technologies to create a superior synergistic solution to the benefit of users,” he added.
The move is the lastest in a long list of Chainlink integrations in the past week alone.Source