Indigo Is Integrating Chainlink Price Feeds to Bring Mirrored Assets to Cardano
Today, we’re excited to announce that we are integrating Chainlink Price Feeds as the primary oracle solution for Indigo Protocol, a synthetic asset protocol being built on Cardano. By integrating the industry-leading oracle solution, we will have access to high-quality, tamper-proof price data needed to secure the minting, swapping, redemption, and liquidation of assets on Indigo while maintaining our decentralized roots.
We selected Chainlink because it’s the most widely used and time-tested oracle solution in the blockchain industry, already helping secure tens of billions of dollars in on-chain assets. Chainlink Price Feeds offer premium price data with wide market coverage and robust oracle infrastructure, leading to price data that is accurate, delivered on-time, and resistant to various types of exploits that plague other oracle solutions such as protections against exchange downtime, flash crash outliers, and data manipulation attacks..
A critical function of Indigo Protocol will be real-time data feeds that span across a wide variety of off-chain markets to ensure Indigo assets (iAssets) reflect the price of the underlying assets they represent . With support from Chainlink oracles, protocol participants, whether minting an iAsset or staking within Indigo Protocol, will have stronger assurances that iAssets reflect current market-wide prices in a manner that is highly resistant to manipulation and inaccuracies.
Among the several contracts developed for Indigo Protocol is the Oracle contract. The Oracle contract receives information about iAsset market prices. This data then provides information to Collateral Deposit Positions (CDPs) to determine collateral ratios, liquidation prices, and protocol fees. Below is a diagram showing how Chainlink will provide market data directly to Indigo Protocol.
Indigo Protocol plans on utilizing Chainlink Price Feeds for a wide range of iAssets, including digital and real-world assets. Indigo Protocol will benefit from the decentralization of the source data and oracle nodes provided by Chainlink.
We also plan to use Chainlink decentralized oracles to bring unique features beyond just providing direct iAsset price data. The next areas of potential integration will center more around products and services:
- Providing volatility data from off-chain markets.
- Providing price data for collateralized assets.
- Providing analytics tools for traders and reporting of market data to Indigo Protocol users.
“Integrating Chainlink into Indigo Protocol will help ensure that our ‘fully decentralized’ initiative is met while integrating the highest standard of oracle functionality in the industry,” said Eric Coley, Founder of Indigo Protocol. “This integration is truly a win-win not only for Indigo but for our users and the Cardano ecosystem as a whole.”
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 Indigo Protocol
Indigo Protocol, a DeFi protocol that enables synthetic assets (iAssets) for traders to gain price exposure to real world assets. Users can mint (on-demand) and trade assets fully collateralized in ADA, stablecoins and iAssets, tracking the price of any asset from Traditional ETFs to cryptocurrencies. Additionally, iAssets enable significant advantages over traditional assets: users can hold them in fractional shares and trade them irrespective of their geographic location or market hours. Users can benefit from price exposure to the underlying asset without going through the obstacles of purchasing and custodying the asset. Enabling price exposure to assets via Indigo’s noncustodial & decentralized architecture unlocks opportunities for wealth creation at the global scale for anyone with an internet connection.