MOAR DeFi Integrates Chainlink Price Feeds to its Secure Lending Operations
MOAR, the first derivative-aware DeFi lending protocol, is thrilled to announce our integration of Chainlink on mainnet to value assets, calculate asset risk parameters, and provide valuation parity of our innovative Booster derivatives with their underlying derivative provider, UNION’s C-OP. By sourcing data through the industry-leading decentralized oracle network, Chainlink enables MOAR users to get strong assurances that deposited assets are accurately priced and the solvency of lending pools are securely maintained.
MOAR will begin by integrating the following Chainlink Price Feeds: ETH/USD, BTC/USD, DAI/USD, and USDC/USD. These decentralized price oracles will be referenced by MOAR smart contracts to calculate deposited assets’ collateral value when used as borrows — borrow capacity used by accounts — and liquidation logic. Furthermore, Chainlink’s ETH/USD and BTC/USD price feeds provide valuation parity with UNION’s C-OP products, which also use Chainlink Feeds. This parity allows MOAR to provide one-click Boosted Borrows, unlocking 100% of deposited collateral value and not requiring overcollateralization of Boosted assets. For a more detailed explanation of Boosted Borrows, read our in-depth guide.
Integration Overview & Use Cases
MOAR is a DeFi lending platform that provides users with enhanced capital efficiency for their assets through the novel use of decentralized derivatives, such as options and interest rate swaps, without taking on leveraged risk. MOAR plugs into Chainlink’s decentralized oracle network to securely and reliably feed the necessary data needed to provide fair market value for deposited and borrowed assets, manage account solvency, and provide accurate purchase and exit points of our borrow Boosters.
Like any DeFi lending platform, accurate and flash-loan resistant values are key components of protecting platform solvency. Every deposited asset has a collateral value, defined by its borrow factor and its current price. Likewise, every borrowed asset has a borrowed value, defined by its current price. The balance of deposited and borrowed value underpins the utility and solvency of MOAR.
MOAR’s automated liquidation algorithm, which constantly combs through MOAR accounts for accounts in negative liquidity, is also reliant on Chainlink oracles for accurate pricing. When an account is in negative liquidity, MOAR’s liquidation algorithm quickly determines the risk impact (size of negative liquidity) and decides which assets to liquidate to maximize recovery, including liquidating Boosted Borrow positions.
Oracle data is critical to MOAR unlocking capital efficiency with our innovative Boosted Borrow, which relies on 3rd-party derivatives. By pairing an underlying deposited asset (such as WBTC or ETH) with its respective put option, which gives the purchaser the right to sell the asset at a price known as the “strike price”, MOAR is able to lock in an exit capital amount at the time the borrow is made. This certainty allows users to borrow against 100% of their deposited asset’s value for the duration of their Booster, as opposed to the 50–80% seen in other platforms. MOAR’s boosted borrows lock capture as much collateral value as non-boosted borrow in upside market moves, and provide more capital protection than non-boosted borrow in downside market moves. Additional examples are provided here. Should an account fall into negative liquidity, MOAR is able to exercise the put option, receiving the difference between the strike price and market price, and simultaneously sell the paired underlying for the market price. As MOAR utilizes other DeFi protocols for options, pricing parity is critical both at the point of borrow (when supported put options are “locked” in) and when determining liquidation trigger (when supported put options could potentially be exercised). For example, if MOAR used a different oracle that showed ETH/USD at $2000, but Chainlink (which feeds UNION’s C-OP) had ETH/USD at $2200, and MOAR tried to exercise a $2100 strike Booster, the exercise would not succeed.
Why We Chose Chainlink
Chainlink is a decentralized oracle network that vastly expands the capability of blockchain-based smart contracts by providing a secure and reliable bi-directional, compute-enabled gateway to any off-chain resource. The Chainlink Network is the industry standard for blockchain oracles, with their widely used Price Feed oracles servicing leading DeFi projects like Aave, Synthetix, and dYdX.
Some of the key features offered by Chainlink Price Feeds which drove our decision to integrate them as MOAR’s go-to oracle solution, include:
- High-Quality Data — data is sourced from numerous premium data aggregators like BraveNewCoin and Kaiko, leading to volume-adjusted global market prices with robust market coverage.
- Reliable Nodes — price feeds are secured by a decentralized network of independent, security-reviewed, Sybil-resistant oracle nodes run by leading blockchain DevOps teams with a proven history of hyper-reliability.
- Decentralized Infrastructure — both the data sourcing and transmission on-chain are decentralized, removing any central point of failure.
- Economy of Scale — Chainlink Price Feeds benefit from an economy of scale effect, where increasing adoption allows multiple projects to collectively use and fund shared oracle networks to fetch commonly required datasets (e.g. ETH/USD). This allows DeFi projects to get premium data quality and robust oracle security for a fraction of the total cost.
Additionally, Chainlink is API-agnostic, meaning that beyond its price feeds MOAR can get virtually any off-chain data point, even from premium data providers. This is key in allowing us to fetch unique data sets that help us create more precise risk certain parameters like volatility.
MOAR is a derivative-aware, cross-chain, and operationally safe lending protocol embedded with accessible financial tooling and derivatives primitives. MOAR is built on the latest version of Solidity, can handle ERC-721 (the token for NFTs and frequently used for derivatives), and fully supports UNION Finance’s C-OP instrument (a decentralized Put) for collateral optimization natively. Built on Ethereum, MOAR will emphasize a user-friendly front-end replete with features like one-click capital optimized borrowing and yield strategy access, a proprietary liquidation program, embedded derivative support, DEX integration, structured credit products, interest rate swaps, term deposits, and cross-chain connections to BSC and Polkadot — with more L1’s planned for the future.
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 about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.