As the industry-standard decentralized oracle network, Chainlink Price Feeds have enabled more than $9.5 trillion in onchain transaction value by delivering highly reliable market data to leading DeFi protocols. Today, Morpho Labs announced it integrated Chainlink Price Feeds to help secure Morpho Blue, a trustless and efficient lending primitive with permissionless market creation.
Morpho Blue’s decentralized protocol enables the overcollateralized lending and borrowing of crypto assets (ERC-20 Tokens) on the Ethereum Virtual Machine. Designed to maximize flexibility, Morpho Blue allows market creators to select any collateral asset, loan asset, liquidation LTV (LLTV), interest rate model (IRM), and oracle.
An official announcement from Morpho Labs explains why “pricing accuracy and reliability are crucial, even amidst the most extreme market conditions” for Morpho Blue’s overcollateralized lending protocol. High-quality oracles are necessary to set high LLTVs and avoid wrongful liquidations or unwarranted bad debt realization.
Because Chainlink’s oracle infrastructure has proven to withstand adverse events such as exchange downtimes, flash crashes, and data manipulation attacks via flash loans, Morpho Labs developed an oracle wrapper for Chainlink Price Feeds to help facilitate the creation of Morpho Blue’s first markets.
The resulting ChainlinkOracle contract provides Morpho Blue market creators access to hundreds of high-quality, industry-standard Chainlink Price Feeds, which can be combined to service a wide variety of markets.