SingularityDAO Integrating Chainlink as Its Preferred Price Oracle To Expand the Utility of Its Dynasets
We are excited to announce that SingularityDAO will integrate Chainlink Price Feeds as its preferred oracle solution for obtaining price reference data used within its future ecosystem products, such as for settling futures derivatives products, determining the best yield farming strategies, and rebalancing DynaSets — ETF-like dynamic token-sets that bundle utility tokens into a single tradable asset, including tokens with only moderate liquidity.
With the safety of user funds being our top priority, SingularityDAO’s layer-two noncustodial DeFi solution is being built to meet the highest level of security. Therefore, we selected Chainlink, the market leader in blockchain oracle solutions, to securely and reliably deliver accurate price data on each of the utility tokens used within any given DynaSet. This allows us to expand the utility of DynaSets through additional product offerings and automate key maintenance jobs using reliable data feeds, all while maintaining the utmost security.
The Importance of Secure Price Feeds
Chainlink decentralized oracle networks will secure the price of each utility token within the SingularityDAO ecosystem to ensure that asset valuations are tamper-resistant and derived solely from high-quality data sources. The security of this data is crucial as it serves to prevent price manipulation attacks by malicious actors, such as the flash-loan induced manipulation of DEX-based price oracles experienced throughout the DeFi ecosystem in 2020. The Chainlink oracle framework features numerous secure node operators run by experienced blockchain DevOps and multiple accuracy checks throughout the data validation process, resulting in industry-leading security and reliability guarantees.
By referencing the Chainlink Price Feeds stored on-chain in reference contracts, AI agents within the SingularityDAO ecosystem will be able to reliably execute trades and settle futures contracts in real-time. Additionally, SingularityDAO’s yield farming will be able to properly assess the total value of collateral when optimizers borrow DynaSet tokens. Finally, asset management AI agents will be able to use Chainlink Price Feeds to rebalance DynaSets depending upon ratios relating to the total value of each token held within it.
The Chainlink Price Feed Oracle Workflow
The first step in a Chainlink Price Feed is receiving price data from off-chain data aggregators. These data aggregators, such as BraveNewCoin, source raw price data across all relevant centralized and decentralized exchanges, and then aggregate it into a single price point by taking into account volume and removing outliers. Therefore, each data provider used by Chainlink Price Feeds already generates volume-adjusted price data with strong market coverage across all trading environments.
Next, each Chainlink oracle node retrieves price data from numerous data aggregators and further aggregates it into a single price point by taking a median value. This ensures that each price submission by a Chainlink node is resistant to manipulation or downtime from any one off-chain data source.
Lastly, numerous independent Chainlink node responses are aggregated to create a single price update on-chain, which is stored in the Price Reference Data contract for that particular Price Feed. This guarantees that no one node is a single point of failure or centralized source of truth. The end result is three levels of aggregation: the data source, individual node response, and oracle network update.
These Price Feeds can be referenced on-chain by any SingularityDAO AI agent within a single call to determine its next action. With the use of secure and reliable Chainlink price oracles, SingularityDAO will be even better equipped to achieve its goal of both increasing the utility of its DynaSets, while decreasing the risk of holding utility tokens with only modest liquidity.
The Chainlink ETH-USD Price Feed.
According to SingularityDAO Founder Dr. Ben Goertzel, “Integrating Chainlink price oracles will allow SingularityDAO to greatly expand how users interact with DynaSets, as well as automate key on-chain functions responsible for managing these assets. Both through its use of decentralization and high-quality providers, Chainlink ensures that DynaSets and the derivatives built to support them will be executed and settled according to fair market prices that are inherently resistant to various data manipulation attack vectors.”
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter and follow @chainlink on Twitter.
SingularityDAO is a layer 2 noncustodial DeFi solution which allows members to manage dynamic token-sets (called DynaSets) consisting of a bundle of utility tokens. These DynaSets are somewhat parallel to ETFs in traditional finance. Tokens that have limited liquidity on their own become easier to trade when aggregated into sets. On top of these token-sets, SingularityDAO enables yield farming and futures-based hedging features. The core purpose of SingularityDAO is to make it more beneficial and less risky to hold collections of utility tokens that individually have only modest liquidity, opening the flow of capital to innovative projects. SingularityDAO is designed to leverage AI at multiple levels: AI manages dynamic token-sets, executes predictive market-making strategies to provide liquidity for these token-sets on DEXs, and predictively models hedging strategies.