Nov 11, 2021

2 min read

Integration Between xDollar and Chainlink Price Feeds to Secure Cross-Chain Stablecoin Lending Protocol

xDollar is a multi-chain, multi-collateral, 0% interest-rate stablecoin lending protocol, where users can borrow non-custodial stablecoin xUSD with the lowest minimum collateral ratio of only 110%. In order to secure the the cross-chain operations, there was a need for access to fresh asset prices that are being supplied directly on-chain in a consistent manner. For that to happen, Chainlink was choosen. Today, this industry has integrated with Chainlink Price Feeds on Polygon, Avalanche, and Arbitrum mainnets. This integrated has given the xDollar industry an access to high quality tamper-proof price needs. This would help in securing the operation of the cross-chain stablecoin lending protocol. This would also provide the users with solid that the collateralization ratios are exact and based on real time. The following Chainlink feeds are involved use:

- MATIC/USD price feed on Polygon

- AVAX/USD price feed on Avalanche

- ETH/USD price feed on Arbitrum


Chainlink is the industry standard for accessing and selling oracle services needed to power hybrid smart contracts on any blockchain. It is also reliable to connect to any external API. They also provide world enterprises and leading data providers a gateway to all blockchains. Characteristics of Chainlink includes:

- It has an infrastructure which is seamless to integrate and time-tested in production which have helped other DeFi protocols secure billions of dollars in smart contract value.

- It maintains high security and high availability in case of unexpected circumstances.

- It provides high-quality data which are precise global market prices when aggregated and unaffected by inaccuracies or manipulation of any single or small set of exchanges. These data are gotten from premium data aggregators which are aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading.

- The Price Feeds are secured by independent, security-reviewed and Sybil-resistant oracle nodes which are ran by leading blockchain DevOps teams, data providers etc., and these nodes are reliable even when siyuations like high gas prices and infrastructure outages occur.

- The Price Feeds have a decentralized network which are at the data source, oracle node, and oracle network levels. Also, generates strong protections against downtime and when the data provider or data source have been tampered with.

- This system has a set of on-chain monitoring tools. The tools permit users to verify the historical and real-time performance of the node operators and oracle networks independently.

This is a great collaboration where the needs of xDollar which is securing the cross-chain operations and accessing fresh asset prices are met. Also, looking forward to extending the usuge of Chainlink services by integrating additional Price Feeds as xDollar launches its V2 platform.

Twitter: @xDollarFi