Blockchain Fintech News

FinTech Platform YouHodler Securing Crypto-Backed Fiat Loans Using Chainlink

FinTech Platform YouHodler Securing Crypto-Backed Fiat Loans Using Chainlink

YouHodler is pleased to announce we are now using industry-leading oracle solution Chainlink to increase the transparency and reliability of our backend pricing mechanisms. Our initial integration involves using Chainlink Price Feeds to access high-quality decentralized exchange rates on various cryptocurrency price pairs, which are then referenced in our lending product when determining users’ borrowing limits and checking the collateralization of outstanding loans.

We decided to integrate Chainlink because it’s the most time-tested decentralized price feed solution in the industry, already helping secure tens of billions of dollars for hundreds of different applications. Chainlink Price Feeds have extensive market coverage, robust and transparent infrastructure, and low latency updates to help ensure the YouHodler platform is always providing users with verifiably fair and current market rates. This integration helps YouHodler further its vision of a hybrid CeDeFi platform optimized for ease of use yet offering better transparency than traditional FinTech platforms.

YouHodler is an innovative FinTech platform designed for beginners and expert users who are looking for a secure alternative to traditional investments in the current low-yield, high-inflation global economic environment. To that end, YouHodler offers high-yield crypto-savings accounts, crypto-backed lending with fiat, and secure fiat-to-crypto and crypto-to-crypto conversions. YouHodler supports over 30 popular cryptocurrencies and tokens as collateral for crypto-backed lending, including BTC, ETH, SUSHI, UNI, COMP, LTC, XLM, SNX, HT, REP, and more.

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We believe that using the open-source decentralized oracle technology of Chainlink will enhance the assurances users receive on our FinTech platform. Chainlink Price Feeds provide new opportunities to improve the reliability and auditability of the data we use to trigger key backend processes like issuing new loans and liquidating under-collateralized loans—all without sacrificing on data quality or security. This means YouHodler has effectively outsourced the rates users receive when taking on crypto-backed fiat loans, leading to more auditability when compared to more opaque traditional FinTech and CeFi platforms.

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After reviewing various data solutions in both the traditional and blockchain world, we identified Chainlink Price Feeds to offer the most extensive set of features, including:

  • 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 from outliers and suspicious volumes. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API/exchange downtime, flash crash outliers, and data manipulation attacks.

  • High Update Frequency — Chainlink Price Feeds can perform frequent price updates at minimal costs, resulting in precise price data that consistently reflects current market conditions.

  • Robust Infrastructure — Chainlink Price Feeds utilize decentralized networks of professional node operators run by leading blockchain DevOps teams and traditional enterprises with a strong track record of uptime during market volatility.

  • Transparent Monitoring — 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 price feeds.

“With Chainlink Price Feeds, we now have a more reliable and transparent backend pricing mechanism, ensuring our crypto-focused lending product consistently reflects current market prices in a manner any user can independently verify as fair,” stated Ilya Volkov, CEO of YouHodler. “Integrating Chainlink Price Feeds marks a key step in creating a hybrid FinTech platform the leverages the advantages from both centralized and decentralized technologies to create a superior synergistic solution to the benefit of users.“

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[To share your insights with us, please write to sghosh@martechseries.com ]

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