Truflation is a leading provider of real-time financial data whose decentralized U.S. inflation index delivers its data onchain via Chainlink. Recently, Truflation integrated multiple Chainlink services – Data Feeds, Data Streams, Automation, and Cross-Chain Interoperability Protocol (CCIP) – to power the new Index.fun platform for building and deploying custom institutional-grade indexes on Base, the Ethereum layer-2 incubated by Coinbase.
Index.fun uses Data Feeds and Data Streams for pricing index components. Leveraging Chainlink’s time-tested infrastructure, Data Feeds have enabled over $19 trillion in transaction value, even during adverse and unexpected events such as flash loan attacks. Data Streams is a pull-based oracle solution that allows protocols to consume data more cost-effectively and at lower latencies while reducing the risk of frontrunning and MEV.
Automation is a decentralized service that allows developers to automate critical onchain functions at regular time intervals or in response to external events, increasing efficiency and minimizing potential for human error. Index.fun is using Automation to trigger the rebalancing of indexes.
Because CCIP achieves the highest level of cross-chain security backed by a separate Risk Management Network, it is the prevailing model for cross-chain digital asset and data transfer among top DeFi protocols, DEXs, and traditional financial institutions. Index.fun will use CCIP to expand its payments and prediction pools cross-chain.
Index.fun’s initial launch on Base will use USDC as the primary token for payments and predictions.
“By leveraging the Chainlink standard for secure data, reliable automation, and seamless cross-chain interoperability, we can innovate the future of markets onchain,” said Truflation’s CEO, Stefan Rust, in an official announcement.
Truflation currently tracks around 100 million data sets that can be used to build out synthetic assets, perpetual trading capabilities, and futures contracts that can be traded on both decentralized and centralized exchanges.
In an interview with Nasdaq’s Jill Malandrino at last year’s SmartCon, Rust explained how anyone can use Truflation’s data to create unique indexes, such as the Deadlift Index, based on research stipulating that CEOs who lift outperform those who don’t on the S&P 500, and the AI Index that tracks AI company performance and the real-world assets driving generative AI.
“You could come up with a yoga index, you could come up with a vegan index – we’ve had really very creative ideas leveraging price feeds from commodities, to goods that you buy at the retail outlet, to temperature,” he said. “Anybody can create all these different types of indexes and ultimately they can then get traded on prediction markets or on exchanges.”
To learn more about Truflation, visit their website, X, Discord, Telegram, and Github.