Symphony Finance Integrates Chainlink Price Feeds to Help Protect Against Data Manipulation Attacks
We’re excited to announce that Symphony Finance, the yield-generating limit order protocol, has integrated Chainlink Price Feeds on the Polygon mainnet. By integrating the industry-leading decentralized oracle network, Symphony Finance has access to high-quality, tamper-proof price feeds needed to help ensure our protocol is hyper-resistant to single sources of failure and price manipulation attacks. Chainlink Price Feeds will provide our users with stronger assurances that orders are filled at correct market prices even during periods of extreme network congestion and external infrastructure outages.
Our initial integration involves the use of the following Chainlink Price Feeds: ETH/USD, BTC/USD, DAI/USD, USDC/USD, USDT/USD, AAVE/USD, LUNA/USD, MATIC/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 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.
Symphony Finance is a decentralized protocol that enables users to generate yield on limit orders across any DeFi protocol — a highly useful tool, since some limit orders remain dormant for days or even weeks while traders wait to fill their positions. Users can create a limit order if they have a rough idea of the maximum and minimum price range of an asset, and the asset will keep generating yield until the limit order is filled. When a limit order is filled, the new assets and accumulated yield get transferred to the user automatically. So all a user needs to do is just set the range (limit and stop-loss) and relax!
In order to help secure our protocol against price manipulation attacks, 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.
In the future, we plan to use additional Chainlink Price Feeds to provide yield-generating limit orders on more assets. We also plan to integrate Chainlink Price Feeds on other blockchains as we continue expanding the Symphony Finance protocol.
“Chainlink Price Feeds are the most robust, time-tested market data solution available in the DeFi industry. Moreover, integrating Chainlink was a seamless process requiring minimal developer resources from our team, giving us more time to focus on building a highly useful DeFi protocol instead of integrating infrastructure.”
— Kakashi, Core Dev at Symphony Finance
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.
About Symphony Finance
Symphony Finance maximizes the total return using limit order + yield generation. The sell asset is deposited to a yield generating protocol like Aave, Mstable, Yearn, etc. This feature allows limit orders to earn yield for the time they are on the order book. The order creator receives the buy asset automatically when the order is filled. The orders are filled automatically by “Executors”. The executor receives a small fee for executing the orders as they have to bear the expenses for running the relayer service and transaction costs.
Stop-loss is another great feature that allows for minimizing risk in case the sell asset price goes below a certain price threshold. Symphony limit orders are obviously different from the traditional limit orders where the sell assets are not utilized while the order is on the order book.