UPFI Network integrates Chainlink Price Feeds on Solana for stablecoin operations

According to an official announcement on Wednesday, UPFI Network has incorporated Chainlink Price Feeds into the Solana mainnet.

.@upfi_network has integrated ​​#Chainlink Price Feeds on @solana to help calculate the collateral value for its partially collateralized, partially algorithmic stablecoin.

Explore why this is important for stablecoin mints and redemptions ⬇️https://t.co/eXOXsuub9P

— Chainlink (@chainlink) June 8, 2022

Soft-pegged to the U.S. dollar, UPFI is a partly collateralised and partially algorithmically stablecoin platform. The protocol’s objective is to maintain stable pricing for the platform’s stablecoin.

Chainlink Price Feeds are open-source, decentralised data feeds that have been battle-tested in production and are being used by many of the most prominent apps in the decentralised finance (DeFi) ecosystem.

On the UPFI Network, two tokens are utilised as collateral: USDC and UPS. When a user mints UPFI by depositing USDC and UPS, USDC is locked in the protocol and UPS is burned. Conversely, when users redeem UPFI for the underlying collateral, they receive their USDC deposit back, and the protocol mints UPS. This dual-collateral structure, together with the redemption process, helps maintain the stability of UPFI’s price.

Now, the Initial integration requires the usage of the Chainlink USDC/USD Price Feed, which is referenced for all mints and redemptions.

UPFI stated that after evaluating multiple blockchain oracle solutions, they chose Chainlink Price Feeds. The reasons behind that are Chainlink’s high-quality data with broad market coverage, robust oracle infrastructure, and various on-chain monitoring systems that enable users to verify the integrity and performance of oracle networks.

UPFI Network now has access to the solid market data required to maintain the peg of its stablecoin UPFI, thanks to the incorporation of Chainlink Price Feeds.

Commenting on this collaboration, Harry Nguyen, Founder of UPFI network commented:

“We’re excited to have integrated Chainlink Price Feeds. High-quality, tamper-proof price data is critical to helping us secure our UPFI stablecoin and Chainlink is, without doubt, the best-in-class oracle network.”

What makes Chainlink Price Feeds so useful?

Some of the most important aspects of Chainlink Price Feeds that make them preferable to other options are:

Robust data: Chainlink Price Feeds sources data from hundreds of exchanges by sourcing multiple premium data aggregators. The data aggregation methodology of Chainlink delivers accurate worldwide market prices that are immune to exchange outages, flash crash outliers, and data manipulation attempts.

Low deviation updates: Chainlink Price Feeds operating on Solana can execute low deviation pricing updates at minimum expense, resulting in accurate price data representing current market circumstances.

Solid infrastructure: Chainlink Price Feeds leverage decentralised networks of professional node operators managed by renowned blockchain DevOps teams and conventional companies with a proven track record of uptime amid market turbulence.

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