Bidao partners with Chainlink to add support for more cryptocurrencies as collaterals
Bidao announced a new association with Chainlink to integrate the price feed solution. The stablecoin wants to add more cryptocurrencies as collaterals. Chainlink Solutions can provide an aggregate market price for each warranty.
“@Bidaochain, a decentralized stablecoin built on @Binance_DEX, to use multiple Chainlink price reference contracts to create and settle CDPs based on aggregate market prices. This expands the types of assets that can be used to guarantee Bidao CDPs ”, tweeted Chainlink.
Oracle solution for price feeds
Chainlink provides decentralized Oracle solutions to integrate data off-chain and on-chain more accurately and securely. The Bidao project wants to use those solutions to boost Bidao's stable currency.
Bidao will initially integrate ETH / USD, BTC / USD and LINK / USD com Chainlink pricing feeds. Those pairs are currently running on the Bidao core network. Adding Chainlink solutions for reference price data makes it possible for Bidao to add more cryptocurrencies as collateral.
Chainlink's Oracle solution provides an efficient way to transfer data from off-chain sources to the blockchain. The data received will activate a smart contract. So precision if that has a high level of importance.
Oracle solutions, like the decentralized version provided by Chainlink, aggregate data from multiple data points. Using multiple sources for applications such as price sources mitigates the risk of one source failure and also depends on a single source.
Chainlink at Bidao Blockchain
Bidao has two different tokens. The government token is IDB, and there is also a stable currency called BAI. BAI's stablecoin is pegged 1: 1 to the US dollar. Users can deposit BID tokens or other compatible guarantees such as BTC, ETH, and LINK to act as an over-guarantee and obtain a loan in the form of BAI.
Regardless, the system needs an exact price for warranties, and Chainlink provides a decentralized Oracle solution for each of the above warranties. Therefore, Bidao can be assured of price accuracy and avoid manipulation attacks that sometimes attempt to change price points on low liquidity exchanges.
Bastian Aigner, CEO of Bidao, believes that the new association strengthens the security of the Bidao platform: "Chainlink substantially strengthens our pricing mechanism using the most decentralized and secure Oracle infrastructure on the market, ensuring that user funds are never at risk."
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