Yieldly’s No-loss Lottery Integrates Chainlink’s VRF to Secure Its Winner Selection Process
Yieldly, the first DeFi platform built atop the Algorand blockchain, is delighted to announce the integration of Chainlink Verifiable Random Function (VRF). Yieldly will use Chainlink VRF as its source of on-chain randomness to support the successful rollout of its initial use case—a No-loss Lottery (NLL) for ALGO holders.
Yieldly’s NLL will initially leverage Chainlink VRF on Ethereum using a custom adapter, with plans to integrate Chainlink VRF directly on Algorand in the future. Chainlink VRF provides the random input used to select winners in the NLL.
Algorand’s first NLL gives users the chance to be rewarded with a share of the accumulated ALGO & YLDY rewards from the Yieldly staking pools via a weekly prize draw. After depositing ALGO into Yieldly Pools, users are automatically awarded lottery tickets. Users keep their stake and lose nothing, irrespective of whether they win the weekly prize.
The first Yieldly NLL was launched on June 5, with community staking over $12m in ALGO for the first week, taking the total reward for the first draw to 6,344 ALGOs. The total ALGOs staked in the prize pool is set to increase exponentially over time. The team expects that the weekly prize fund will top $1m within 12 months.
By integrating Chainlink’s industry-leading decentralized oracle network, Yieldly can obtain access to a tamper-proof and auditable source of ‘randomness’ needed for the selection of winners in the weekly NLL draw. Ultimately, this will create a more exciting, transparent, and fraud-proof user experience, as users will benefit from having an unbiased chance of being selected as the winner of the accrued staking rewards in the pool each week.
After reviewing various solutions, Yieldly selected the Chainlink VRF because it’s based on cutting-edge academic research, supported by Chainlink’s time-tested oracle infrastructure. It is also secured through the generation and on-chain verification of cryptographic proofs that guarantee the integrity of each random number supplied to smart contracts.
Seb Quinn, CEO of Yieldly said: “Generating randomness securely on blockchains is a notoriously difficult problem. So Chainlink VRF totally made sense for us. Chainlink VRF provides us with a reliable source of randomness directly on-chain, together with associated cryptographic proofs that allow users to verify the randomness’s authenticity. Incorporating this functionality will provide a greater degree of trust by our users in our weekly NLL.”
Chainlink has a strong reputation for providing high-quality oracle solutions that already send critical off-chain data into some of the top projects in the DeFi ecosystem, which means it already successfully secures large amounts of value using the same oracles providing their unique form of VRF randomness. Incorporating Chainlink’s VRF benefits Yieldly by providing a more reliable and provably secure form of randomness in the selection prize winners, which our users can trust.
Yieldy is bringing the first range of DeFi products to the Algorand blockchain. From no-loss prize games and liquidity pools to cross-chain swapping and staking across ASA, ERC, BEP2-based DeFi protocols,Yieldy enables users to to interact with the DeFi sector in an intuitive and low cost way.
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, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper.