Chainlink recently released an article on how developers can make use of Chainlink oracles in their Matic DeFi application.
Chainlink also went further to show how its price feeds can help applications to gain access to tamper-resistant and high-quality data. Such data is free from risks like flash loan attacks and oracle exploits.
Matic Network is known to provide a solid platform that will increase large-scale adoption for DeFi applications. Since Matic went live in early 2020, its low-fee, high-performance infrastructure has made it a popular layer 2 solution among Ethereum developers. Likewise, Chainlink has gained popularity as the top choice oracle solution for DeFi protocols.
Why Are Safe DeFi Protocols Needed?
There has been incredible growth of DeFi over the last year. This growth has also led to an increase in the levels of on-chain transactions. With such an increase, the performance of the Ethereum blockchain can be hindered because of low throughput and some scalability limitations.
These limitations affect the flow of transactions, and users can face a hard time working with DeFi protocols that experience slow transaction periods and high transaction rates. These two factors are also known to prevent DeFi from crossing into the mainstream. With layer 2 solutions like the Matic Network, a new growth stage can be opened for the DeFi ecosystem.
Even with layer 2 solutions, DeFi applications are still in need of reliable high-quality and external data. This would help to decrease the risk of attacks on DeFi applications. With Chainlink price feeds, data from various standard data providers can be aggregated and provided to DeFi protocols.
Having explained the role of Chainlink price feeds and the merits of using the Matic Network to build a DeFi protocol, the report went ahead to show developers how they can make use of Chainlink price feeds in developing a Matic-based DeFi application.
How To Use Chainlink Price Feeds on the Matic Network
Chainlink price feeds provide the highest standard in-production solution for DeFi protocols that are fighting against attacks and DeFi exploits. To make use of Chainlink oracles and price feeds on the Matic Network, developers must link their MetaMask wallet to the Matic Mumbai testnet.
Through this process, such a developer can be eligible to obtain some Mumbai testnet MATIC tokens. Those tokens will then be used in their DeFi smart contract. Developers will then need to create, deploy, and test their smart contract. Full details on creating and using such smart contracts in order to take advantage of Chainlink price feeds can be found here. Overall, the ability to add Chainlink price feeds and oracles enhances the building of DeFi applications on the Matic Network.
Before now, Synthetix announced their partnership with Chainlink, leading to the launch of their Synthetic oil asset, sOIL. Synthetix utilizes a Chainlink decentralized oracle network to mirror the price movement of oil.
As of the time of publication, Chainlink (LINK) was trading at $12.11 with a 24-hour trading volume of $1,185,410,343. LINK price has gone up 2.9% over the last 24 hours. It also has a circulating supply of 399.5 million coins and a max supply of 1 billion coins. At the present time, Binance is the most active market trading LINK.
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