Minterest Is Integrating Chainlink Price Feeds to Bring DeFi Borrowing and Lending to Moonbeam.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
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.
“With the integration of Chainlink Price Feeds, we can be certain that we’re using the leading oracle infrastructure available on the market, and our users have a highly reliable market data solution securing their loans,” stated Josh Rogers, CEO of Minterest. “As we continue to expand our lending platform and increase DeFi adoption on Moonbeam, a reliable oracle mechanism allows us to get closer to our mission of increasing fairness and transparency in the world of finance.”
“The launch of Minterest gives Moonbeam users a best-in-class lending experience with an easy-to-use interface and an emphasis on long-term yield,” said David Post, Managing Director of Corporate Development and Strategy at Chainlink Labs. “We’re excited to support Minterest with our decentralized price feed solution in increasing DeFi adoption in the Polkadot ecosystem with a long-term mindset.”
So welcome to Minterest, in your best interest
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.