Indigo Is Integrating Chainlink Price Feeds to Bring Mirrored Assets to Cardano
Today, we’re excited to announce that we are integrating Chainlink Price Feeds as the primary oracle solution for Indigo Protocol, a synthetic asset protocol being built on Cardano. By integrating the industry-leading oracle solution, we will have access to high-quality, tamper-proof price data needed to secure the minting, swapping, redemption, and liquidation of assets on Indigo while maintaining our decentralized roots.
We selected Chainlink because it’s the most widely used and time-tested oracle solution in the blockchain industry, already helping secure tens of billions of dollars in on-chain assets. Chainlink Price Feeds offer premium price data with wide market coverage and robust oracle infrastructure, leading to price data that is accurate, delivered on-time, and resistant to various types of exploits that plague other oracle solutions such as protections against exchange downtime, flash crash outliers, and data manipulation attacks..
A critical function of Indigo Protocol will be real-time data feeds that span across a wide variety of off-chain markets to ensure Indigo assets (iAssets) reflect the price of the underlying assets they represent . With support from Chainlink oracles, protocol participants, whether minting an iAsset or staking within Indigo Protocol, will have stronger assurances that iAssets reflect current market-wide prices in a manner that is highly resistant to manipulation and inaccuracies.
Among the several contracts developed for Indigo Protocol is the Oracle contract. The Oracle contract receives information about iAsset market prices. This data then provides information to Collateral Deposit Positions (CDPs) to determine collateral ratios, liquidation prices, and protocol fees. Below is a diagram showing how Chainlink will provide market data directly to Indigo Protocol.