We are pleased to announce that HodlTree is integrating Chainlink’s market-leading decentralized oracle network. HodlTree will first leverage Chainlink’s popular ETH/USD and BTC/USD Price Reference Data feeds to track the prices of both BTC and ETH, and then expand out to many additional price oracles as new assets are launched on the network.
HodlTree is a second-generation decentralized lending protocol. At the moment, the interest rates for lending on decentralized money market protocols are very low — approximately 0.5% APY for Ethereum and Bitcoin. HodlTree’s goal is to solve this problem by offering better interest rates to lenders, with a targeted rate of around 8–20% APY for both Ethereum and Bitcoin.
In order to achieve that goal, a reliable source of prices is critical to ensure the stability of the collateral and liquidation modules. This is broken down into two important tasks: calculating the value of collateral when issuing loans and monitoring off-chain prices for timely execution of liquidations in case of insufficient collateral.
Given that price action for cryptocurrency markets takes place across many different centralized and decentralized exchanges, an oracle is required to connect off-chain and retrieve aggregated price data that takes into account marketwide price discovery.
As such, we have selected Chainlink’s Price Reference Data as the oracle mechanism to power HodlTree. It provides us with several guarantees:
- Accurate price data that reflects volume adjusted market coverage across all trading environments
- High availability and tamper-resistance delivery of data via its decentralized network architecture made up of secure node operators
- Time-tested reliability that currently secures around a billion dollars in value for many leading DeFi applications.
Importantly, Chainlink’s Price Reference Data includes numerous price oracles already on mainnet and an established framework for building new ones that we can use to quickly launch additional collateral types on HodlTree. This will allow us to scale up rapidly to support a large selection of assets for lending & borrowing, as the backend oracle development work is already done and proven to be reliable.
“Chainlink’s technology is cementing itself as one of the cornerstones of the DeFi ecosystem,” said Azamat Malaev, Co-Founder of HodlTree. “Integrating their price reference oracles will save us a lot of backend development work, allowing us to focus on building out HodlTree instead of worrying about the many complexities of building your own oracle. I’d also like to acknowledge their friendly and professional team, which makes the integration process smooth and quickly answered any questions we had.”
If you’re a developer and want to quickly get your application connected to Chainlink Price Reference Data, visit the developer documentation and join the technical discussion in Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
Chainlink is an open-source blockchain abstraction layer for building and running decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Kyber Network; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.
Are you a BTC or ETH holder? What if we say you can make up to 20% APY regardless of price movements for your asset?
HodlTree is a second-generation decentralized lending protocol. Our mission is to provide significantly improved interest rates for ETH & BTC with a targeted rate of around 8–20% APY and expand the list of coins in the nearest future. We are developing a decentralized solution for cryptocurrency holders where they can earn money without losing control over their coins.