In TradFi, collateral has long been treated as static due to considerable overhead in it's management. In order to free up collateral, you need to repay the associated debt.
A major innovation of DeFi is unique permissionless composability. One constant theme is strong rehypothecation of assets for increased capital efficiency. Despite this, the innovation around collateral management has been lacking and protocols still rely on static collateral.
We've seen attempts at making collateral yield-bearing or rehypothecating yield-bearing positions such as LSTs and LRTs. Nonetheless, collateral has remained static – users deposit into a specific vault without much flexibility afterwards, reducing a user’s flexibility.
Moreover, today's DeFi landscape has users navigating a maze of protocols, each with its vaults, strategies and configurations. These silos create complexity: different rules for reward tokens, compounding strategies and cross-protocol optimizations.
All of this results in reduced capital efficiency, a lack of flexibility and various UX challenges in a hard-to-navigate environment for end-users.
Jigsaw introduces the concept of dynamic collateral as the missing piece of DeFi for unlocking unparalleled flexibility and capital efficiency.
Chainlink is the industry-standard oracle platform bringing the capital markets onchain and powering the majority of decentralized finance (DeFi). The Chainlink stack provides the essential data, interoperability, compiance, and pirvacy standards needed to power advanced blockchain use cases for institutional tokenized assets, lending, payments, stablecoins, and more. Since inventing decentralized oracle networks, Chainlink has enabled tens of trillions in transaction value and now secures the vast majority of DeFi.
Many of the world's largest financial services institutions have also adopted Chainlink's standards and infrastructure, including Swift, Euroclear, Mastercard, Fidelity International, UBS, ANZ, and top protocols such as Aave, GMX, Lido, and many others. Chainlink leverages a novel fee model where offchain and onchain revenue from enterprise adoption is converted to LINK tokens and stored in a strategic Chainlink Reserve.
Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link
The Chainlink Labs Channel Partner strategy is intended to outline a joint approach between Chainlink Labs and select accelerators, launchpads, incubators, devshops, and software tools to promote the user adoption and growth of the web3 ecosystem. Chainlink Labs and the channel partners will collaborate to accelerate and nurture the web3 ecosystem in key areas including gameFi, NFTs, developers, and startups.
Chainlink Labs is the leading provider of secure and reliable open-source blockchain oracle solutions, enhancing smart contracts by connecting them to a wide range of off-chain data sources and computations, such as asset prices, web APIs, IoT devices, payment systems, and more. We are dedicated to the development and integration of Chainlink as the standard decentralized oracle framework used by smart contracts across any blockchain.
