Quick take:
- Binance Smart Chain has successfully integrated ChainLink decentralized oracle network on its mainnet as its recommended oracle solution
- Binance Smart Chain can now support an ecosystem of externally connected DeFi applications
- ChainLink’s price feeds and decentralized oracle network is at the core of DeFi and can prevent Flash Loan exploits
The team at Binance has announced that they have successfully integrated Chainlink decentralized oracle network on the Binance Smart Chain (BSC) mainnet. This in turn means that Chainlink’s oracle network is now available for use by all smart contracts built in the Binance Smart Chain. Furthermore, the integration allows Chainlink oracles to be accessible on the Binance Smart Chain without any dependencies from Ethereum.
Chainlink on Binance Smart Chain will further enhance the DeFi ecosystem as explained below.
By integrating Chainlink, Binance Smart Chain can now support a robust ecosystem of externally connected DeFi applications, as well as numerous other smart contract verticals such as gaming, insurance, and supply chain management. Chainlink oracles are accessible on Binance Smart Chain without any dependencies on Ethereum.
ChainLink’s Oracle Network & Price Feeds Can Prevent DeFi Flash Loans
Binance Smart Chain already hosts several of Chainlink’s price feeds which allows developers to integrate them into the numerous DApps on BSC. These price feeds are currently being used to maximize onchain liquidity pools for low-slippage during token swaps.
Furthermore, Chainlink Price Feeds have recently been integrated by several DeFi protocols to prevent flash loans. The most recent projects to integrate these price feeds include EasyFi, Curve Finance and ValueDefi.
In a recent report, the team at ChainLink explained how flash loans can be avoided by using secure price oracles to offer low slippage swaps via automated market makers (AMM).
Each Chainlink Price Feed is secured by a decentralized network of Sybil-resistant oracle node operators run by leading security and blockchain DevOps teams. The oracle nodes source price data from multiple off-chain data aggregators, meaning each price point has strong volume-adjusted market coverage reflective of all trading environments. All nodes’ responses are then aggregated to form a single price update, further enhancing the data’s availability and resistance to manipulation from any one node or data source.