Risq Protocol Integrates Chainlink Price Feeds to Help Secure Call and Put Options on Crypto
We’re excited to announce that Risq Protocol — risk and asset management on the blockchain — has integrated Chainlink Price Feeds on Binance Smart Chain mainnet. By integrating the industry-leading decentralized oracle network, Risq Protocol has access to high-quality, tamper-proof price feeds needed to help ensure accurate pricing on option premiums and profits and losses at the time of exercising options. This will provide our users with stronger assurances that pricing is always correct and cannot be manipulated.
Our initial integration involves the use of the following Chainlink Price Feeds: WBTC, ETH, BNB, BCH, LTC, PAXG, COMP, CAKE, UNI, LINK, YFI, AMZN, GOOGL, and TSLA, with all pairs backed by USD and more feeds to be added in future updates. 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 in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
Risq Protocol’s OptionsDesk is a decentralized options trading platform. Liquidity providers act as option writers (sellers) and traders can buy call or put options to take positions on price movements or to protect crypto holdings against price dips.
In order to help secure our call and put options contracts, we needed access to fresh 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 to make use of an oracle to 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 generates more precise 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. Chainlink nodes have 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.
Risq Protocol aims to be the largest DeFi options trading platform, spanning multiple networks and potentially hundreds of tokens. The initial release of the OptionsDesk on BSC has 14 crypto assets for trading options. Future updates will add additional assets and networks including Ethereum, Polygon, and more.
“We selected Chainlink because we wanted to use the most trusted oracle network with access to multiple blockchains and the most price feeds compared to other projects,” said Mace McLain, Co-founder of Risq Protocol.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.