PancakeHunny Integrates Chainlink Price Feeds to Protect Against Flash Loan Attacks
PancakeHunny sets out to tighten the security of protocols upon witnessing the growing amount of threats and exploitations amongst DeFi platforms and to prevent any potential flash loan attacks, we’re excited to announce that we are now securing hives using Chainlink Price Feeds — the industry standard for decentralized price oracles.
Our initial integration, now live on the BSC mainnet, involves the use of Chainlink Price Feeds for BNB/USD and CAKE/USD. Chainlink Price Feeds are the most widely used and time-tested oracle solution throughout the DeFi industry, collectively securing tens of billions of dollars in users’ funds across the largest DeFi projects and blockchains. Most importantly, Chainlink Price Feeds are flash loan resistant because they provide financial market data in a decentralized manner that reflects the volume-weighted, market-wide price aggregated from across centralized and decentralized exchanges.
So while DEX-based price oracles can be easily manipulated because they only represent the current exchange rate of a single exchange, Chainlink Price Feeds represent the aggregate exchange rate across the whole market and therefore can be manipulated because one exchange or a small group of exchanges is inaccurate. As such, any flash loan attacks on DEXes cannot skew the exchange rate of the CAKE and BNB tokens being consumed by PancakeHunny.
Securing the PancakeHunny Ecosystem With Chainlink
PancakeHunny is a yield aggregator built on top of Pancake Bunny, designed to help token holders maximize their profits by strategically deploying their capital across different DeFi protocols and yield farming strategies. PancakeHunny offers a wide selection of Hives (yield vaults) that automatically reinvest yield farming profits into the desired token by users, auto-compounding returns to increase ROI.
PancakeHunny requires the use of price oracles to determine the amount of liquidity mining rewards users receive from our minter contract when they deposit funds. This process requires our smart contracts have access to price feeds to calculate the value of user deposits within hives.
Our upgrade to Chainlink oracles will greatly improve the security and accuracy of valuing user deposits, setting a solid foundation for PancakeHunny to scale in TVL. Some of the key advantages of Chainlink Price Feeds include:
● High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
● Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record for reliability, even during high gas prices and infrastructure outages.
● Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
● Reputation — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.
Importantly, because Chainlink Price Feeds use an on-chain reference contract model, updates occur asynchronously (in a separate isolated transaction) while data queries for the latest on-chain update remain fully synchronous (occurs in a single transaction). This ensures PancakeHunny can receive the market-wide price of BNB and CAKE at any point in time, yet prevent flash loans from having any effect over the financial market data being consumed.
One thing we’ve learned is that while DEXes are great for swapping tokens, they make for insecure and unreliable price oracles given the risk of flash loan attacks and the stale pricing data. These issues are amplified even further with lower liquidity tokens because it requires less capital to skew the market price on a single DEX. We hope others learn from this lesson and use Chainlink Price Feeds as their oracle solution.
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.
🍯 PancakeHunny aims to be the most engaging and fun DeFi destination built on Binance Smart Chain (BSC). On top of that, we are developing a brand new and unprecedented gamified farming playground ♠️♥️♣️♦️🎰🎲 where every user can enjoy high yields and exciting games at the same time.
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