Horizon Protocol Integrates Chainlink Price Feeds to Secure Asset Prices on Horizon Exchange
We’re excited to announce that Horizon Protocol — a DeFi protocol for the issuance and trading of borderless synthetic assets — has integrated Chainlink Price Feeds on BSC mainnet. By integrating the industry-leading decentralized oracle network, Horizon Protocol has access to high-quality, tamper-proof price feeds needed to support the on-going development of a wide range of innovative derivative products planned for Horizon Exchange.
Horizon Protocol brings traditional financial markets products into the world of decentralized finance in the form of synthetic assets. Synthetic assets, known as “zAssets” on Horizon Protocol, can track the price movement and risk/reward profiles of both traditional and crypto assets, and even baskets of multiple assets.
“Chainlink is a no-brainer when it comes to reliable price feeds and we look forward to providing our community with reliable and innovative products that use secure Chainlink oracle networks.” — Horizon Protocol Team
We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate 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.
Chainlink Price Feeds will be used in the Horizon Exchange dApp to price all zAssets issued by Horizon Protocol, giving traders a diverse array of financial tools to work with. As the development of Horizon Exchange progresses, these instruments will continue to expand in quantity to allow access to new products and markets that have never been possible before.
In order to help secure the trading of zAssets on Horizon Exchange, we needed access to fresh asset prices that are supplied directly on-chain 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 a blockchain oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
The integration with Chainlink will provide Horizon Protocol users with strong assurances of the accuracy and security of the prices used to create products. The initial integration for our core-asset launch involves the use of 21 Chainlink Price Feeds:
Chainlink Price Feeds provide a multitude of critical features:
- 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.
Moving forward, Horizon Protocol will continue to leverage Chainlink Price Feeds to expand the list of derivative products we offer our users on Horizon Exchange, including derivative products for:
- Shorting Sales
- Futures Trading
- Diverse Array of Weighted Baskets
- Leverage Trading
- Options Trading
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 Horizon Protocol
Horizon Protocol is a DeFi protocol on the Binance Smart Chain that facilitates the issuance and trading of borderless derivatives. Horizon Protocol bridges the products of traditional financial markets and brings it into the world of decentralized finance (DeFi) in the form of synthetic assets. Synthetic assets, or zAssets on Horizon Protocol, allow users to gain exposure to the risk/reward profiles of wide-range of real-world assets and derivative products, including equities, commodities, cryptocurrencies, NFTs, fiat, and even combinations, or baskets of assets. Horizon Protocol users can invest or speculate on zAssets in borderless spot, futures, and options markets.