New Change FX to Provide Data to Defi Via Chainlink
Posted by Colin Lambert. Last updated: April 15, 2021
New Change FX says it will start providing its FX, precious metal, and crypto asset market data covering circa 2,300 currency pairs on blockchains through the Chainlink Network. The move means that using Chainlink’s collection of secure node operators, smart contract developers can access NCFX’s live, regulated, independent benchmark and reference data and analytics directly on-chain when building applications and products in Decentralised Finance (DeFi) – a new parallel financial system running on top blockchains (on-chain) that provide transparent, openly accessible, and decentralised financial instruments.
DeFi markets are quickly expanding in value and NCFX says most DeFi products require high-quality financial data. “Getting our existing suite of APIs blockchain-enabled through Chainlink was quick and easy, requiring no changes to our existing API infrastructure,” NCFX says. “Thus, we are able to expose our data to emerging DeFi markets and support their growth, while also increasing our revenue as a data provider.”
Developers will be able to use the Chainlink Network to access FX benchmark and reference rates and transaction cost analytics for traditional markets, precious metals, and crypto assets. NCFX says it envisions the data being used across DeFi applications to trigger actions within on-chain financial products like derivatives contracts, lending pools, insurance products, algorithmic stablecoins, automated trading strategies, and much more.
The firm adds that it wanted to expand its reach and support the rise of smart contract applications for DeFi within various blockchain networks. It notes, however, that blockchains are purposely disconnected from the outside world, meaning smart contracts have no built-in capabilities for calling NCFX APIs. This require the use of a secure blockchain middleware known as an Oracle to bridge the existing API data into blockchain environments.
Chainlink is the industry standard oracle solution, with a plethora of traditional data providers and decentralised applications using it to buy, sell, and transfer data between one another.
By becoming a Chainlink data provider, NCFX is able to increase the amount of premium financial market data available to DeFi developers. On-chain financial products can use the data in various novel ways, including to issue loans, price synthetic asset swaps, trigger a portfolio rebalance, determine collateral ratios for stablecoins, and various other DeFi functions.
“Through our integration with the Chainlink Network, we now have a future-proof oracle solution that makes our data consumable in DeFi markets across leading blockchain environments,” says Andy Woolmer, CEO of New Change FX. “Connecting our existing APIs to the Chainlink Network was an incredibly efficient process that required very little time and resource on our end, yet gave us access to a large new market segment that requires high-quality financial data to bring its users value.”