UPFI Network Has Integrated Chainlink Price Feeds on Solana To Support Stablecoin Monetary Operations
We’re excited to announce that UPFI Network has integrated Chainlink Price Feeds on Solana mainnet. By integrating the industry-leading oracle solution, UPFI Network has access to the robust market data needed to help maintain the peg of its partially collateralized and partially algorithmically stabilized stablecoin UPFI. The initial integration involves the use of the Chainlink USDC/USD Price Feed, which is referenced during all mints and redemptions.
After reviewing various blockchain oracle solutions, we selected Chainlink Price Feeds because they provide access to the highest quality data with broad market coverage, robust oracle infrastructure proven to be reliable during extreme network conditions, and various on-chain monitoring systems that allow users to verify the integrity and performance of oracle networks. The end result is highly accurate, up-to-date, tamper-proof, and transparent price reference data that’s made accessible on-chain for our smart contracts to consume in a single function call.
Critically, they provide the custom update frequencies required to support our stablecoin design on Solana.
UPFI is a partially collateralized and partially algorithmically stabilized token soft-pegged to the U.S. dollar. The protocol’s goal is to keep the UPFI token price stable. Two tokens are used as collateral: USDC and the UPFI share token (UPS). When a user mints UPFI by depositing USDC and UPS, the USDC is locked in the protocol, and the deposited UPS is burnt. When a user redeems UPFI for the underlying collateral, the user gets their deposited USDC back, and the protocol mints UPS. This dual-collateral design, along with the redemption mechanism, helps to keep the price of UPFI stable.
In order for our smart contracts to accurately calculate in real-time the value of collateral during minting and redemptions, we needed an oracle solution that can fetch highly accurate USDC/USD exchange rates and deliver them on-chain securely and reliably. This price oracle is critical to helping maintain both the peg and protocol solvency.
Chainlink Price Feeds are open-source, decentralized data feeds that have been battle-hardened in production and are already used by many of the leading applications in the decentralized finance ecosystem. With this integration of Chainlink Price Feeds, the calculation of collateral during minting and redemption becomes more secure and tamper-proof while still maintaining frequent response times and high accuracy.
Some of the most notable considerations around Chainlink Price Feeds that make them superior to other alternatives include:
- 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 from outliers and suspicious volumes. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API/exchange downtime, flash crash outliers, and data manipulation attacks.
- Low Deviation Updates — Chainlink Price Feeds running on Solana can perform low deviation price updates at minimal costs, resulting in precise price data that consistently reflects current market conditions.
- Robust Infrastructure — Chainlink Price Feeds utilize decentralized networks of professional node operators run by leading blockchain DevOps teams and traditional enterprises with a strong track record of uptime during market volatility.
- Transparent Monitoring — 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 price feeds.
“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.” — Harry Nguyen, Founder of UPFI Network
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 UPFI Network
UPFI is the first stablecoin protocol which design principles to create a highly scalable, non-custodial, extremely stable, fractional-algorithmic, and pure on-chain financials on Solana. It supports next-generation payment networks on the blockchain.
We utilize a stablecoin, which is partially collateralized and algorithmically stabilized. It only requires a portion of the capital to mint, which is denominated in other stable assets. The remainder is denominated in a volatile asset as collateral. This generates both a natural demand and a value capture for the volatile asset.
UPFI aims to replace fixed-supply digital assets by bridging the gap between digital currencies and real-world applications with transaction costs of almost zero.