We’re excited to announce that Minterest
—a value-capturing lending and borrowing protocol designed to make DeFi fairer—is integrating Chainlink Price Feeds
on Moonbeam. The integration will allow Minterest to fetch high-quality price data during core protocol functions such as taking out and redeeming loans, and triggering liquidations of undercollateralized positions. Integrating the industry-leading oracle solution will help ensure that the prices referenced within Minterest are reliable and tamper-proof, protecting users against oracle manipulation attacks and other outlier events, such as flash crashes, flash loan attacks, and exchange downtime.
Minterest is a lending protocol on Moonbeam built to service billions in TVL and challenge existing DeFi
incumbents. The protocol offers a decentralized money market, combined with an incentive structure that will facilitate and promote the widespread adoption of DeFi. By utilizing its own buyback mechanism, the protocol passes on 100% of generated surplus to its community of active participants.
Minterest captures value from the combination of interest rate, flash loan, and liquidation fees which are then passed on to Minterest users participating in the protocol’s governance over time. This results in high long-term yields and incentivizes long-term liquidity for the protocol.
A fast and secure oracle
mechanism delivering reliable price feeds to determine borrowing rates and collateralization ratios is critical for the Minterest platform to operate in a safe and reliable manner. Relying on any solution that uses a single source for data delivery could result in it being compromised, unresponsive, or otherwise providing faulty information -- putting the entire protocol at risk.
We decided to integrate Chainlink because it is the most time-tested decentralized oracle solution, backed by high-quality data, secure node operators, and a robust reputation framework for proving the security and performance of its systems. With Chainlink, prices referenced by Minterest are secured by a decentralized network of independent, Sybil-resistant oracle nodes run by leading blockchain DevOps with a proven track record of high availability and tamper-proofness in their delivery of data on-chain. These Chainlink nodes source data from numerous independent, high-quality data aggregators like BraveNewCoin and Amberdata, meaning there are multiple data sources that each represent a volume-weighted price aggregated from all relevant centralized and decentralized exchanges. This sourcing method is key because it prevents outlier price data on single exchanges from corrupting the aggregated price referenced by Minterest during core protocol functions. As a result, Minterest will consistently issue loans and trigger liquidations at fair market value and keep the protocol fully collateralized and solvent.