FinNexus Blog

FinNexus Blog

FinNexus Expands Chainlink Integration

Michele PennaMarch 17th 2021

At FinNexus, we have been working hard to expand our offer in terms of products and services. Today we’re excited to share that we have successfully expanded our integration of the industry-leading oracle solution Chainlink to support a series of upgrades to our platform, including new underliers, leveraged tokens, and implied volatility data.

If you want to learn more about the integration between FinNexus and Chainlink, be sure to follow our social channels for more updates.

A new way to trade options

FinNexus is a decentralized platform currently live on Ethereum and Wanchain. As one of a handful of DeFi projects that enable users to create and trade options contracts, the platform offers two key products.

The first is the FinNexus Protocol for Options (FPO), which deploys an innovative method for the writing, buying, and settling of options contracts. Rather than following a standard order book system — as is the case with traditional finance — FinNexus relies on shared on-chain liquidity pools, making for a much easier experience when trading. Furthermore, this system maximizes the efficacy of existing liquidity, spreads risks, and allows participants to collectively participate in sharing premiums.

Secondly, FinNexus has recently relaunched its mining system, which allows users to mine USDT, USDC, and FNX (the platform’s native token), all in one place. This can potentially bring a 320x rewards multiplier — a high number even by DeFi standards — while stabilizing the ecosystem and preventing farm-and-dump scenarios.

Securing options markets with Chainlink

FinNexus has been using Chainlink Price Feeds on the Ethereum mainnet to power decentralized options since October 2020.

The FPO platform on Ethereum regularly calls Chainlink Price Feeds to fetch exchange rates for BTC/USD, ETH/USD, MKR/ETH, SNX/USD, LINK/USD, FNX/USD, USDT/USD, and USDC/USD. These decentralized price oracle networks consistently offer a highly secure, reliable, and accurate source of financial market data, which is inherently resistant to various forms of downtime and manipulation (e.g., resistant to flash loan-induced sandwich attacks).

As a result, FPO consistently consumes high-quality price data sourced from numerous secure nodes and premium off-chain data aggregators, ensuring price feeds have volume-adjusted market coverage across all trading environments. We have never experienced any issues with our Chainlink integration on Ethereum, so it is natural for us to leverage Chainlink’s blockchain agnostic capabilities to support our projects across different blockchains.

Building the next big thing in DeFi

FinNexus and Chainlink have gone a long way together. But there is much more to come as we continue to explore how to bring newer and better products to crypto enthusiasts.

In particular:

  • FinNexus intends to introduce more options contracts with a wider range of underlying assets. These will include cryptocurrencies, gold, crude oil, fiat currencies, stocks, etc. The platform will rely on Chainlink to provide price feeds for these new products.
  • Chainlink is working with FinNexus to bring Implied Volatility (IV) data feeds to FPO using a generalized data oracle framework. FinNexus will be one of the first projects in the DeFi industry to use on-chain IV data for options pricing.
  • FinNexus is working on new DeFi derivatives called decentralized leveraged tokens. Chainlink will provide live price feeds for the underlying assets and for rebalancing the tokens’ leveraged positions.
  • FinNexus will integrate Chainlink Keepers. This will allow FPO smart contracts to outsource regular maintenance tasks in a decentralized manner.

We look forward to launching a more expansive set of DeFi products across a multitude of blockchains through support from Chainlink, ultimately resulting in a more diverse and secure marketplace for on-chain options.

About Chainlink

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.

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About FinNexus

FinNexus is building a suite of open finance protocol clusters that will power hybrid marketplaces trading both decentralized and traditional financial products. The headline product released is a fully decentralized options model with pooled liquidity, live on both Ethereum and Wanchain.
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