RociFi Integrates Chainlink Price Feeds to Value Under-Collateralized Loan Collateral in Real-Time
Aug 4, 2022
We’re excited to announce that RociFi — an under-collateralized credit protocol — has integrated Chainlink Price Feeds on Polygon mainnet. By integrating the industry-standard decentralized oracle network, we now have access to high-quality, decentralized, and tamper-proof price data feeds — critical infrastructure needed to help calculate the price of loan collateral in real-time.
RociFi is a cutting-edge under-collateralized lending protocol that doesn’t require off-chain data sources such as KYC in order to borrow. This is possible because RociFi reimagines credit scores, under-collateralized credit, and bond markets.
Long preceding the development of soulbound tokens, RociFi’s non-fungible credit score (NFCS) are immutable, non-transferable NFTs that record a user’s credit, reputation, and trust. Once minted, an NFCS is a unique ID for a wallet. To date, RociFi has minted almost 10,000 NFCS tokens.
Helping power RociFi’s under-collateralized credit protocol is a credit market that’s organized into three lending pools based upon a user’s NFCS score. This enables lenders to deposit into pools that match their risk preferences and receive a yield-generating debt token in return.
RociFi debt tokens offer lenders a no-lockup period on capital because they can exit their position earlier than the maturity date by selling their debt token on AMMs if there’s a lack of redemption liquidity on the protocol. This is another RociFi innovation — a decentralized bond market for debt.
In order to accurately price the collateral value of under-collateralized loans, we needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. 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. Chainlink Price Feeds are the industry-leading solution, with infrastructure that’s seamless to integrate, time-tested, and currently helps secure tens of billions of dollars in value for leading DeFi protocols.
A few standout features of Chainlink Price Feeds include
- 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 liquidity depth, and cleaned from outliers and suspicious volumes. Chainlink’s data aggregation model generates precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
- 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 with a strong track record for reliability, even during high gas prices and extreme network congestion.
- 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 the oracle network.
- Transparency — Robust, publicly available reputation frameworks and on-chain monitoring tools allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.
- Economy of Scale — Chainlink Price Feeds benefit from an economy of scale effect, where increasing adoption allows multiple projects to collectively use and fund shared oracle networks to fetch commonly required datasets. This allows DeFi projects to get premium data quality and robust oracle security for a lower total cost.
“Any lending protocol, under-collateralized or over-collateralized, needs reliable price data feeds. In order to build long-lasting functionality with NFCS tokens and a decentralized bond market for debt, we needed the best price data solution on the market — which made integrating Chainlink Price Feeds a no-brainer.” — Chris Brookins, CEO of RociFi Labs.
About RociFi
RociFi is a cutting-edge DeFi-native under-collateralized credit protocol built on Polygon. RociFi pioneered the non-fungible credit score (NFCS), which uses non-transferable NFTs to store and record on-chain credit, reputation, and trust. They are the gateway for users to borrow under-collateralized loans with their on-chain wallets, effectively acting as a form of Web3 identity. On the flip side, RociFi lenders have customized lending pools to deposit into based on risk preference; including the ability to exit positions early via secondary trading of debt tokens on supported AMMs.
Mint NFCS ➡️ blog.roci.fi
About Chainlink
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.
Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.