By Jeremy G
Edited by Kenneth K
Elastos and Chainlink have officially integrated in efforts to “power a cross-chain stablecoin protocol built on the Elastos Ethereum Sidechain.
The Cyber Republic ETH Task Force will deploy an ELA/USD decentralized price feed using Chainlink’s Price Reference Data framework as the basis for collateralization checks on users’ Collateralized Debt Positions (CDPs), thereby ensuring full stablecoin collateralization.”
With over 50% of Bitcoin’s hashrate in security, a high throughput ETH side chain, and cheap gas fees, Elastos positions itself as an ideal host for DeFi platforms. The mechanics of the ELA stablecoin protocol will be to “collateralize ELA and mint stablecoins pegged to USD. Not only will such a stablecoin provide greater utility to ELA holders, but it will generate a stable, digital currency that can be used on Elastos for payments and throughout DeFi as collateral.”
Each time a stablecoin is minted in the ELA protocol, the user will receive a collateralization price floor in the event a liquidation is triggered. If the ELA price falls below this price floor, then the user’s CDP is liquidated.
The ETH Task Force has just released a new CR Suggestion to build a “Testnet Proof-of-Concept (POC) deploying a decentralized ELA/USD oracle feed and integrating it with the open source frontend feeds.link as an additional Oracle Protocol on the platform.”
After the Proof-of-Concept, how to bridge the oracle with Ethereum, and how to create incentives for adopting mainnet Elastos oracles can be discussed. The price oracle acts as a watershed building block into the greater Elastos DeFi landscape of creating a steady cross-chain stablecoin protocol which benefits ELA and ETH communities.
“Vulcan.Link is an official Chainlink node operator generating revenues from oracle feeds and working on building a ‘CMC for decentralized oracle feeds’ by combining various protocols including Chainlink, Tellor, and BAND.” -Chainlink and Elastos Suggestion
Working with this experienced Chainlink Node Operator is imperative to onboarding Elastos tech onto the ETH and Chainlink ecosystem. There are current limitations to mainnet Ethereum’s block times in terms of the frequency of the price feeds:
“Currently, official Chainlink feeds are only updated with non-negligible latency due to Ethereum’s block time and tx cost (eg. BTC-USD feed only triggered every 1% variation or 60min). ELASTOS high-TPS sidechains and low cost can enable us to experiment with higher throughput Oracles and see what challenges occur in that context.”
Deploying oracle price feeds via the Elastos Ethereum side chain could quicken price feed updates, lower gas costs, and increase throughput exponentially. Vulcar.Link will continue to explore Elastos ETH side chain oracle capabilities.
ETH Task Force states they’ve “already begun working on the Elastos ETH Sidechain and will have prototypes ready likely next week; our experience as an approved Chainlink provider is essential to keeping costs low.”
Goals for their suggestion, include:
1. Deploy on-chain contracts (Token Wrapper, Oracle, Aggregator)
2. Run Vulcan Link ELASTOS-Chainlink Node
3. ELA/USD Oracle Aggregator Contract (with triggers every 5 minutes)
4. Select a minimum of 3 partner oracle providers (deploy own Oracle contract and node, add to Aggregator)
5. Add Elastos Oracle to feeds.link frontend.
The suggestion requests approximately 3 weeks time to fund the initiative. Costs include:
3 hrs for the Elastos Chainlink Node Deployment Guide Write-up -250 ELA
3 months for Kubernetes + AWS RDS Server costs – 300 ELA
20 hrs open source web frontend design and development ($55/hr) -500 ELA
Total Project Cost: 2300 ELA -Approx 5300 USD
Clarence Lui, VP of Development for Elastos, states, “Integrating Chainlink allows us to bring powerful new financial primitives to the DeFi market, particularly through a cross-chain stablecoin powered by our high-throughput Ethereum Sidechain. This provides users across any chain with a stable form of collateral that is constantly updated to reflect the current market price via Chainlink price feeds. We envision this as the first of many integrations where Elastos developers build next generation dApps connected to real-world data.”
One example of future ELA/LINK integrations include integrating real-time weather, traffic, or public transportation data into ride-sharing dapps like Dasceee.
Chainlink and Elastos prove to be a fitting match in DeFI and other sectors in the crypto ecosystem. “Chainlink’s tamperproof, high-availability data, combined with the tremendous hashrate and flexibility of Elastos’ DPoS Ethereum Sidechain will provide a highly resilient platform for developers to build the decentralized internet with both superlative security and performance.”
Between Chainlink’s reliable data and Elastos’ robust bitcoin backed network, new budding platforms can start to be built for multiple use cases.
DeFi on Elastos had been explored in the past by CR Press. Clarence Liu reminds the community that:
“In terms of other DeFi projects that Elastos could build to establish a presence, there are many possibilities. We could tokenize physical assets similar to Synthetix, issue our own stablecoin like MakerDAO, or build our own DEX and connect to different blockchains and do the settlement on Elastos. To be honest, we’ve made progress internally.
“MakerDAO, Chainlink, Band Protocol and others in the DeFi space have all had talks with us and are aware of Elastos, but realistically we have to commit and take the first step.”
With news that Chainlink has officially partnered with Elastos in pursuit of a cross-chain stablecoin and oracle ela/usd price feed, others will see the concept turn into a reality and could follow suit with their respective platforms.
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