Fei Protocol Upgrades Its Oracle Mechanism to Chainlink Price Feeds
We’re excited to announce that Fei Protocol — a scalable and decentralized stablecoin platform — has successfully upgraded the protocol’s primary oracle mechanism to Chainlink, the market-leading decentralized oracle network. Fei Protocol is now leveraging the widely used ETH/USD Chainlink Price Feed as the reference price, further increasing the security and reliability of FEI maintaining its $1 peg in a decentralized manner. Additionally, Fei Labs is currently supporting two new Chainlink Price Feeds for FEI/ETH and TRIBE/ETH, enabling other DeFi protocols to easily add support for the FEI stablecoin and Fei Protocol’s governance token TRIBE.
The Tribe, Fei Protocol’s community, opted to switch to Chainlink because its time-tested oracle infrastructure provides high quality data with extensive market coverage and high availability, successfully demonstrating its ability to mitigate vulnerabilities like flash crash outliers and data manipulation attacks via flash loans. Chainlink already secures tens of billions of dollars in user funds for top DeFi projects like Aave and Synthetix, as well as supports an extensive ecosystem of DeFi projects that collectively use and fund shared Price Feed oracles, ultimately allowing Fei Protocol to get premium data quality and robust oracle security for a fraction of the total cost.
Why Fei Protocol Upgraded to Chainlink
Previously, Fei Protocol used the Uniswap ETH/USDC time-weighted average price (TWAP) as the primary oracle. However, after further research and investigation of various oracle solutions, Chainlink has been identified as the preferred solution due to its improved market coverage and ability to achieve price precision without sacrificing security. This results in more accurate prices that reflect the whole market, while still getting the liveness and decentralized security guarantees users demand. Upgrading to Chainlink Price Feeds should allow Fei’s various mechanisms to operate more effectively by using more up-to-date information about current market conditions, and is an important step in furthering the precision and resilience of Fei Protocol.
One of the other advantages of the upgrade is the ability of Chainlink to help Fei Protocol quickly increase support for additional assets and / or new blockchains in the future, if the community wants to ensure support for such initiatives. Chainlink has a wide range of live price feed oracles across many blockchains, making Fei scaling more seamless and secure.
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more, visit chain.link, read the Chainlink 2.0 whitepaper, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
About Fei Protocol
Fei Protocol is a decentralized and scalable, reserve-backed, stablecoin aimed at achieving governance-minimized central banking. Fei has created a new stablecoin that stabilizes itself through a monetary peg-based policy based on protocol-controlled reserves.
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