Recast1 Uses Chainlink Price Feeds for Market-Wide Price Coverage
We’re excited to announce that Recast1, the non-fiat-oriented stablecoin protocol, is using Chainlink Price Feeds for access to high-quality, tamper-proof price feeds. This update helps provide assurances to users that prices quoted in the Recast1 App reference globally accurate market data from Chainlink’s highly secure decentralized oracle network.
We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to implement 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.
R1-Coin’s proprietary Creation Proof of Stake, or cPOS for short, is based on an algorithm that applies users incentives hourly to consolidate transfers. This unique model allows R1-Coin’s unlimited supply to maintain a stable value that’s ultimately capped by inflation. Since R1-Coin’s supply fluctuates regularly, it’s important that users have tamper-proof, accurate data around its price.
In order to help provide users information about R1-Coin’s relative price stability, we needed access to fresh asset prices 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 to our application. After reviewing various oracle solutions, we selected 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.
“We’re excited about using Chainlink technology to bring our users the industry’s most secure and reliable price data. We look forward to exploring more ways to integrate Chainlink decentralized services in the future.” — R1 Founding Team
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.
The concept the Recast1 developers came up with for stabilizing their token is sliced bread simple. Instead of ‘punishing’ traders by charging transaction fees every time R1 tokens change hands, the system is designed instead to reward traders with more tokens. Capped by inflation and underpinned by a never-ending potential supply, the system is designed to keep the coin price buoyant.