Recently, OpenDeFi by OroPocket announced that it would integrate Chainlink Oracles in the ecosystem for the purpose of real time price updation of its real world assets.
It will be the Chainlink-powered gold and silver Price Feed oracles (XAU/USD & XAG/USD) live on mainnet in a bid to offer real time prices of the precious metal assets that have been tokenized on the ecosystem.
It’s not news that Chainlink Network offers safe and highly reliable price data for smart contracts, thereby making sure that the trading, as well as collateralization of these tokenized assets are maintained based on what the fair market price of the real-world assets are at the moment.
The whole crypto world, at the moment, has about four hundred billion dollars in worth, while the traditional financial system has far more. One traditional financial institution like Fidelity manages as much as three trillion dollars.
What this means is that if the crypto world is to expand, there has to be a bridge between it and the traditional financial ecosystem. This is what OpenDeFi intends to do. It intends to attract massive institutional investment to the world of decentralized financing, and it will do that by taking out the obstacles that institutional investors are facing.
OpenDeFi will offer investors, both individuals and institutions, the ability to easily access tokenized precious metals like silver and gold, which are totally insured and held by reputable custodians.
The features will permit Open DeFi to offer their users trades without worrying about price slippage. They will also offer their clients flash loans, while tokenized gold and silver can be used as collateral.
The partnership by OpenDeFi was to ensure that the issue of price slippage doesn’t occur, and this could only be possible by using highly accurate price feeds to determine fair exchange rates. The fact that OpenDeFi is highly decentralized means it can’t depend on the asset prices that are gotten solely from one exchange or one oracle node. What it does instead is to utilize decentralized oracle networks, which offer different price data that are gotten from different exchanges. It will source data from both decentralized and centralized exchanges. They will be weighted with key measurements such as volume.
The partnership by Open DeFi with Chainlink will offer the former access to a robust, widely used and secure oracle solution that exists at the moment. Chainlink is currently working with about four billion dollars of assets from different DeFi protocols and platforms. This has been made possible because of the data quality, oracle network security, transparency, and ease of use for development teams.
Decentralized oracle networks which include Sybil-resistant nodes are what makes the Chainlink Price Feeds work. They look for prices from different top notch data aggregators, instead of using a single exchange.
What users love about Chainlink Price Feeds is the fact that it screams of transparency, as it offers open visualizations that permit users to easily watch the performance of the oracle network, as well as the different nodes, in real time.