Rari Capital has incorporated Chainlink Price Feeds as a recommended solution for its recently launched backup. A permissionless framework for creating and running custom open interest pools with customizable parameters.
Rari Capital, a Defi Yield Aggregator platform, announced the news in a blog post on Monday April 5th. According to the announcement, this integration is the extension of the already used Chainlink ETH / USD price feed in Rari Capital’s earnings aggregation products.
Rari Capital’s Fari is a permissionless framework that allows users to create new pools in the chain through an intuitive user interface that allows any combination of tokens, custom pool parameters, including liquidation thresholds, credit-to-value ratios, and yield curves.
According to the Rari team, with conventional on-chain pools there is a risk that, for example, toxic security could result in undercollateralization of entire pools. Fuse was designed to mitigate such risks by offering a “heterogeneous framework in which users can create their own pools with any combination of tokens and parameters”. This allows earnings aggregators to select pools that best suit their risk preferences.
Backup pools are always safe due to overcollateralization and therefore Supported asset price feeds are a necessity to protect lenders from undercollateralization. The Rari team selected Chainlink as the only oracle solution that, due to its broad market coverage and robust infrastructure, meets the strictest standards for protecting user funds and supporting long-term adoption
Chainlink’s tamper-proof and hyper-reliable decentralized oracles provide fuse pool developers access to fair and secure prices for various DeFi tokens, stablecoins, synthetic assets and more.
Chainlink pricing oracles are critical to getting the most up-to-date asset valuations when making loans and reviewing their current collateral.
For the start of Fuse, Rari Capital created six on-chain pools with different parameters, all of which are fully secured by Chainlink. Rari said:
“These pools give users the ability to get instant returns on their on-chain assets, borrow working capital, and get a feel for the multitude of integration options with Fuse.”
Jack Lipstone, co-founder of Rari Capital, commented:
“Providing the most robust Oracle solution to users is important to ensure that user-created pools are fully secured at all times. Extending our previous integration with Chainlink was the obvious choice given our extensive track record in securing the best DeFi protocols even during difficult periods of network congestion and a number of flash credit attacks. Their approach to prioritizing the security of user funds matches our own, making this integration an ideal combination. “
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