DeFi’s rapidly growing TVL demands greater security from decentralized oracle networks (DONs) that lay the groundwork for the entire DeFi ecosystem. Integrating Chainlink as the most decentralized and secure oracle network standard not only allows DeFi platforms to protect their users’ assets; it allows developers to create more advanced hybrid smart contracts that generate more user value.
To that end, Alpaca Finance, a leading lending platform on Binance Smart Chain (BSC), announced today that it’s integrating Chainlink Price Feeds to increase the security of its growing $1.2 billion dollar TVL. Chainlink, which secures tens of billions of dollars in TVL across DeFi, will serve as Alpaca’s primary oracle solution, enabling users to earn the highest possible APYs with the highest possible security.
Alpaca’s BSC-based leveraged yield farming protocol is designed to offer the most capital-efficient lending and borrowing through platform-controlled undercollateralized loans. Its innovative suite of products, from single-asset leveraged yield farming on CAKE to two-sided borrowing in LPs and more, offers flexible customization to individual users and institutions.
Alpaca’s CMO, known as Samsara Notallama, said the undercollateralized nature of Alpaca’s model enables higher capital efficiency and funds utilization than other platforms. “At the end of the day, it empowers our platform to offer some of the highest APYs on the market to users, lenders and borrowers alike,” he said.
Prior to integrating Chainlink, Alpaca built its own oracle solution. “It was effective but drained our technical resources and was not nearly as robust as Chainlink,” Notallama said. “Now, we can deploy those freed-up resources into new products that can add more value to our users.”
He emphasized how Chainlink strengthens Alpaca’s commitment to top-tier security. “Integrating with Chainlink’s top-quality Price Feeds reinforces our position as one of the safest yield generation protocols on BSC, adding another important layer to our already near-impenetrable security framework.”
Alpaca’s announcement indicated Chainlink’s easily-integrated, blockchain-agnostic Price Feeds are part of the platform’s plans to scale support for new trading pairs across new blockchains in the future. Notallama summed up Chainlink’s essential role: “If you’re a DeFi builder, integrating Chainlink is like installing internet in your office. It just makes everything else work.”