Chainlink Price Feeds deliver secure and reliable price data on-chain to power top DeFi apps and decentralized exchanges (DEXs). As the industry-standard decentralized oracle network, Chainlink has, to date, enabled more than $8.5 trillion in transaction value throughout the DeFi economy.
As liquid staking tokens (LSTs) gain adoption, high-quality, tamper-proof price data is necessary to secure more than $20 billion total value locked (TVL) in liquid staking protocols. Today, Balancer, a leading DeFi protocol and DEX, announced it has integrated Chainlink Price Feeds on Arbitrum to help secure its composable stable pool and accelerate DeFi’s shift toward LSTs.
LSTs unlock the value of tokens staked in Ethereum, enabling them to be traded and used as collateral in DeFi protocols. Unlike stablecoins, which are 1:1 pegged to underlying assets, LSTs are correlated assets with prices that vary according to accrued staking rewards, making accurate price data even more imperative.
“Balancer’s LST pool is set to be a central component of ETH staking and LST adoption, so we needed to build it with longevity and robustness in mind,” said Balancer co-founder, Fernando Martinelli. “The cornerstone of any DeFi protocol is its security, and Chainlink Price Feeds have proven time and again to be the most secure price oracle solution for DeFi. There was no other oracle that could do the job.”
Balancer will initially utilize the wstETH/ETH, rETH/ETH, and cbETH/ETH Chainlink Price Feeds to secure its tri-token pool, which is purpose-built for large volume trades of staked ETH tokens.
Chainlink’s team said the integration is poised to lay the foundation for the future of LSTs:
“As staking continues to garner adoption, it has become crucial for DeFi protocols like Balancer to secure their protocols with the right oracle solution. We’re very excited to support Balancer’s LST composable stable pools, which are pioneering the financial rails needed for mass LST adoption, with this integration.”