We’re excited to announce that BonqDAO—a decentralized liquidity platform built on top of an overcollateralized, 0% interest lending protocol—has integrated Chainlink Price Feeds on Polygon mainnet. By integrating the industry-leading decentralized oracle network, BonqDAO has access to high-quality, tamper-proof price feeds needed to help securely trigger loan liquidations and calculate redemptions for Bonq EUR (BEUR) based on accurate market data, even in volatile market conditions. This will provide our users with stronger assurances that the Bonq decentralized liquidity platform is supported by secure, reliable, and real-time price data.
Our initial integration involves the use of the following Chainlink Price Feeds: MATIC/USD, EUR/USD, USDC/USD, DAI/USD, and ETH/USD. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
BonqDAO is a decentralized liquidity platform built on top of a lending protocol that creates sustainable long-term and cost-efficient liquidity and sustainable yield strategies. At its core, Bonq offers overcollateralized lending with 0% interest. However, Bonq’s true power comes from self-sovereign liquidity solutions that allow Web3 protocols and projects to create on-demand liquidity for their native tokens at no recurring cost and without selling their assets.
The mission of BonqDAO is to make cost-efficient liquidity available for a broad range of on-chain assets. Therefore, the protocol uses a data-driven risk model built to weather all different market conditions and mitigate both exogenous and endogenous risks for users.
In order to help secure collateral calculations, we needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features, such as:
High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.
As BonqDAO continues to scale, allowlist more assets, and expand into other chains in early 2023, we plan to integrate additional Chainlink Price Feeds and leverage their multi-chain availability and battle-tested infrastructure.
“By integrating Chainlink Price Feeds, BonqDAO is able to offer its users access to a fast, secure, and decentralized oracle network with strong guarantees against price manipulation. This is critical to our interest-free lending protocol.”—Delia Sabau, BonqDAO CEO
Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.
BonqDAO makes self-sovereign finance a reality.
With Bonq liquidity platform, businesses and individuals can access the liquidity of their crypto assets without giving up ownership and completely interest-free! Web3 protocols and projects can create deep, protocol-owned liquidity for their native tokens at zero interest. Users can access low-risk, sustainable yield strategies.