Peaches.Finance Integrates Chainlink Price Feeds to Source Reliable Price Data for pTokens
We’re excited to announce that Peaches.Finance — a synthetic asset (pTokens) issuance protocol — has integrated Chainlink Price Feeds on the Ethereum mainnet. By integrating the industry-leading decentralized oracle network, Peaches.Finance has access to high-quality, tamper-proof price feeds needed to achieve two key functions. First, help determine the amount of collateral required for minting a pToken. Second, help determine whether sufficient collateral is backing an existing pToken. The integration will provide our users with stronger assurances that assets are sufficiently collateralized and pTokens are minted at fair prices that reflect market-wide price discovery.
Our initial integration involves the use of the following Chainlink Price Feeds: TSLA/USD and AMZN/USD. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars of value, maintaining robust security and high availability assurances even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
Peaches Protocol makes it easy to create pTokens on Ethereum that track the price of real-world assets. pTokens are decentralized, censorship-resistant tokens that can be minted by any stablecoin HODLer or stablecoin liquidity provider around the world.
In order to secure pTokens minted using the protocol, we needed access to reliable, up-to-date asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed an oracle solution that can fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features such as:
- 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 of outliers and wash trading. Chainlink’s data aggregation model helps generate accurate global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
- 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 with a strong track record of 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 System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.