xToken Integrates Chainlink Keepers to Support Set-and-Forget DeFi Products
xToken is excited to announce an expansion in Chainlink oracle services powering the xToken platform, helping to enhance security, expand the list of set-and-forget DeFi products available to users and decentralize management of our core contracts.
Our newest integration, which was launched on mainnet in less than 48 hours, involves using Chainlink Keepers to trigger the automatic release of XTK incentives on the xToken Management staking module. This eliminates the need for manual management of staking incentives. Additionally, we plan to further our integration of Chainlink Price Feeds to calculate the value of assets used as collateral or loans within our upcoming xToken Lending offering.
We chose to integrate Chainlink because it is the industry standard for decentralized oracle solutions, already helping secure tens of billions of dollars in value for hundreds of projects across multiple blockchains. Operated by historically reliable node operators, Chainlink decentralized oracle networks have proven to be highly resilient in the face of market volatility and network congestion, making it an ideal solution for high uptime, tamper-resistance, and correctness of xToken products.
Spearheading Passive Management of DeFi Products Using Chainlink Oracles
xToken is an Ethereum-based protocol that makes it extremely easy for users to passively earn yield in a wide range of liquidity provision and staking strategies across top DeFi protocols like Aave, Synthetix, and Bancor. xToken accomplishes this by wrapping complex strategies into simple, fungible, and yield-bearing tokens that are composable with the rest of the DeFi ecosystem. From automated re-investments in Uniswap v3 pools to auto-compounding in popular DeFi staking modules, xToken is a one-stop shop for passive token holders looking to put their funds to work and participate in governance while abstracting away the need for active management.
In order to further create a secure passive DeFi experience for users, we have implemented Chainlink Keepers as a trust-minimized smart contract automation service that calls on-chain functions when predefined conditions are met. Keepers will replace the manual process of releasing XTK rewards to our staking module. We expect this to be the first of many tasks outsourced to Chainlink Keepers in the future as a means of offloading management work from our team and giving users more reliable and end-to-end decentralized solutions.
In the case of xToken, our first Chainlink oracle integration involved pulling token price feeds for our xSNX contract. In the coming weeks, we’ll be doubling down on Chainlink oracle integration when we release xToken Lending, our native lending service offering leverage on our xAssets like xAAVE, xKNC and xINCH. Users will be able to borrow against their DeFi tokens while earning native staking rewards. We’ll be using Chainlink’s price feeds to determine the value of users’ collateral in the protocol.
Some of the reasons we selected Chainlink Keepers over other alternatives include:
- High Uptime — Chainlink Keepers are run by the same professional DevOps teams that have an established on-chain performance history of providing high reliability to Chainlink Price Feeds during extreme network congestion and market volatility.
- Low Costs — Chainlink Keepers have several gas-optimizing features that lower the costs of automating maintenance tasks for users, including a rotating node selection process to prevent gas price auction wars and stabilize costs.
- Decentralized Execution — Chainlink leverages a decentralized and transparent pool of Keepers to help provide strong guarantees around secure contract automation, saving teams time and mitigating the risks around manual interventions or centralized servers.
- Expandable Computation — Chainlink Keepers perform off-chain computations and generate calldata verifiable by smart contracts, allowing developers to build advanced, trust-minimized dApps at lower costs.
“Chainlink Keepers provides us with a highly reliable, low cost, and decentralized smart contract automation solution to begin removing manual tasks from xToken products,” commented Michael J. Cohen, Founder of xToken. “We were able to implement Chainlink Keepers within 48 hours, which speaks volumes to the ease-of-integration and our ability to innovate upon it to service other platform needs in the future.”
Stay tuned for future updates, including our upcoming integration of Chainlink Price Feeds to power a new lending solution on the xToken platform!
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. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.
xToken is a DeFi protocol that wraps complicated staking and liquidity strategies into convenient and composable set-and-forget ERC20 tokens. xTokens are free-floating ERC20s that can be sent from wallet to wallet, added to liquidity pools and pledged as collateral for loans. They save users time and money, and they distill intricate token mechanics into simple buy-and-hold strategies while providing an opinionated governance option for users.