Chainlink Price Feeds To Support Synthetic Assets on SynLev
Chainlink will now help synthetic leveraged token platform SynLev by providing decentralized oracle networks via price feeds. These price feeds will report on the prices of a synthetic asset’s underlying value. SynLev revealed the announcement in a Medium blog post on November 18.
Yesterday, SynLev announced its decision to choose Chainlink as its primary oracle provider for decentralized data. Within a new integration, the project will utilize price feeds made by chainlink to monitor and report price data to the SynLev ecosystem. Specifically, SynLev will use the data gathered by price feeds to calculate the value of leveraged assets, to ensure reliable trading and price settlement.
Integrating Chainlink marks a major milestone in SynLev’s mission to become the industry standard for providing decentralized, trustless, and non-KYC gated leveraged assets.
SynLev is a DeFi protocol that offers synthetic leveraged token pairs on the Ethereum network. The ultimate goal of the team is to provide trustless, decentralized, and non-KYC leveraged assets that represent the blockchain version of ETFs.
For the start, SynLev will begin the integration with Chainlink by leveraging the already established ETH/USD price feed. Later on, the project will begin to support three other price feeds, which include BTC/USD, XAU/USD, and FTSE/GBP.
SynLev states that these price feeds are the core of their ecosystem. By integrating them, the price feeds can help with determining the underlying value of the related assets. By utilizing the price feeds, SynLev can correctly align the price of the leveraged tokens with their underlying value on the market.
Why SynLev chose Chainlink as its main oracle network
According to the blog post, Chainlink represents the most important decentralized oracle network. This is primarily supported by the fact that Chainlink solves two major blockchain issues. These issues include the lack of access to reliable off-chain data and the lack of security when bringing that data to on-chain networks.
Chainlink solved both problems by creating an easily integratable external API oracle network that developers can utilize. These APIs, which Chainlink calls adapters, are then used to fetch data aggregated by a network of oracles. Furthermore, this system enables developers to easily connect on-chain data to their protocols. This is done in a decentralized way and at the lowest price possible.
SynLev believes that the superiority of products created by Chainlink has consistently led to integrations and partnerships with leading DeFi applications. This includes projects such as Kyber Network, Aave, and Synthetix. The team also notes that Chainlink enjoys various partnerships with major companies such as Google, Oracle, and SWIFT.
Because of these accomplishments, SynLev decided to integrate Chainlink. They name the project as the primary solution for fetching price data without losing decentralization and security. Commenting on this, the founder of SynLev stated:
“SynLev’s foundation is reliant on properly functioning oracles. Chainlink’s proven price oracles ensure our synthetic asset pairs are stable and reliable, allowing our users to utilize decentralized leveraged financial products with strong assurances that they will function as intended.”
This event marks yet another partnership with DeFi protocols this month. As Defiye previously reported, decentralized cross-chain money market protocol Equilibrium integrated Chainlink to bring DeFi products to Polkadot. Additionally, Chainlink also partnered with Etherisc this month. Together, they will provide reliable weather data to smallholder farmers in Kenya for settling insurance.
Marko is a content writer passionate about cryptocurrencies, blockchain technology, geopolitics, and information security. After an internship at Cointelegraph in 2018, he decided to pursue writing about the field of decentralized technology full-time.
Defiye is the number one resource for DeFi news, blockchain news and crypto news. Our team of industry leading journalists publishes fresh and breaking DeFi news daily so readers can be sure to stay on top of the crypto market and the defi market, while making the most of their cryptocurrency trading, defi trading and blockchain activities.