BadgerDAO Integrates Chainlink Price Feed to Secure DIGG’s Rebasing Function
Badgers never stop $DIGG’ing into new levels of Bitcoin-native DeFi. We are excited to announce that we have integrated Chainlink on mainnet to secure our elastic supply token DIGG. Utilizing Chainlink’s industry-leading decentralized oracle solution, we can provide holders with strong guarantees that each DIGG token will accurately track the price of Bitcoin, even during extreme market volatility and in the midst of data manipulation attacks.
To make this integration a reality, a custom Chainlink Price Feed has been launched for the DIGG/BTC trading pair on the Ethereum Mainnet. It supplies the DIGG protocol with an accurate, up-to-date, and tamper-proof exchange rate for DIGG/BTC, supporting the daily DIGG token rebase events. Combining Chainlink’s high quality data feeds with Badger’s innovative on-chain financial products, the usage of BTC-denominated tokens can increase in adoption and reliability across the Ethereum DeFi ecosystem.
Securing the Badger Ecosystem Using Chainlink Oracles
To determine the supply changes to DIGG, the token contract requires the current DIGG/BTC exchange rate. We initially used a DEX-based oracle for market data, however, this solution did not provide the sufficient level of market coverage, tamper-resistance, or accuracy to support DIGG’s growing adoption. Instead, we landed on a price feed solution that reflects all trading environments and takes into account key metrics like volume, liquidity, outliers, and wash trading. This ensures each rebase is in accordance with global markets for both Bitcoin and DIGG.
Obtaining such price data requires the integration of a decentralized oracle and upon looking into different oracle solutions, we found that Chainlink provided the maximum amount of market coverage and tamper-resistance, allowing us to scale up the security and utility of the DIGG token.
Some of the key advantages of Chainlink Price Feeds include:
High-Quality Data: Chainlink Price Feeds fetch data from a multitude of premium data aggregators like BraveNewCoin and Kaiko, ensuring price data is aggregated from hundreds of exchanges, weighted by volume, and removed of outliers and wash trading. This generates global market prices that are resistant to issues like API downtime, flash crashes, and data manipulation attacks like flash loans.
Secure Oracle Nodes: Chainlink Price Feeds are secured by numerous independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and leading enterprises. Nodes in the Chainlink Network have a strong track record for reliability, even during network congestion and outages.
Decentralized Network: Chainlink Price Feeds are decentralized at multiple layers including the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by the data provider or oracle network.
Economy of Scale: Chainlink Price Feeds benefit from an economy of scale effect, where the increase of adoption allows projects to collectively fund shared oracle networks to fetch commonly required datasets. This allows DeFi projects to get premium data quality and robust oracle security for a fraction of the total cost.
By integrating Chainlink as the price feed solution securing the daily rebase of the DIGG token supply, users are provided strong assurance that supply changes will consistently reflect market wide trading activity. This is key to increasing the adoption of DIGG, as well as growing the usage of Bitcoin as collateral in DeFi. We’re excited to bootstrap additional security to DIGG, and envision Chainlink continuing to play a large role in the future.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.