- DeFi Lending has breached the $30 billion milestone thanks to Chainlink’s secure, decentralised oracle feeds.
- Chainlink collaborates with most major lending protocols, including Aave and Compound.
- The Chainlink team has proposed they incept a Chainlink DeFi Yield Index (CDY Index) to help standardise and streamline borrowing/lending within the industry.
- The CDY Index would aggregate DeFi yields across major markets like USDC, USDT, WBTC and WETH.
Chainlink can’t seem to go a week without hitting some kind of milestone or announcing some kind of major partnership. Earlier this month the interoperability blockchain entered a collaboration with stablecoin issuers Circle, working to bring the tokenised currency (USDC) across several Layer 1 chains. Now, Chainlink has helped push DeFi lending totals to over USD $30 billion (AUD $45 billion) – but according to a recent report, their work is far from done.
The Chainlink DeFi Yield Index
Chainlink are perhaps the biggest oracle provider to decentralised lending platforms like Aave and Compound. This means that Chainlink are responsible for sourcing live, reliable off-chain data (price feeds) and communicating them back to dApp platforms in real-time. Because of Chainlink’s long-standing reputation for security and impermeable data, they have driven much of DeFi’s success over the years. However, the team believe creating a DeFi Yield Index would assist both lenders and borrowers in finding new opportunities.
The Chainlink DeFi Yield Index will be designed to aggregate DeFi lending yields using industry-standard price oracles. By promoting the discoverability of onchain yield opportunities on lending protocols, the CDY Index is intended to enhance capital efficiency in DeFi lending”
Chainlink
The team created a mock yield index for USDC, which basically condenses the average lending/borrowing interest rate from across Chainlink’s price feeds into one figure. That way investors can easily see which platforms are over/under capitalising based on the average yield.
The indices would initially focus on big markets such as USDC, USDT, WBTC and WETH, but may expand to other stablecoins and eventually even individual coins, if the liquidity and demand is there.
Chainlink (LINK) has cemented itself in the top 15 cryptocurrencies by market cap and is up nearly 5% in the past 24 hours.
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