Polkadot-based synthetic asset and DEX protocol Coinversation is going to integrate Chainlink price feeds oracles for accurate price data on all assets used within the protocol.
Conversation, a synthetic asset issuance protocol and AMM-based decentralized exchange (DEX) based on Polkadot blockchain, announced the news in a blog post on Monday, May 3rd. The integration will be used as an oracle solution to acquire accurate and up-to-date pricing on all assets being used on the Coinversation.
The Coinversation Protocol is both a synthetic asset issuance platform and a decentralized exchange. The protocol allows users to use its native CTO token and DOT token as collateral to mint synthetic assets such as cryptocurrency, bonds, stocks, and gold.
Chainlink price feeds will ensure that synthetic assets are issued, traded, and redeemed according to the current fair market prices.
Coinversation DEX is an Automated Market Maker (AMM)-based protocol that “solves transaction depth and liquidity problems as no counterparty is needed to perform synthetic asset swaps.”
The native utility CTO token is used to pay the transaction fees on Coinversation. CTO holders also receive dividends from the transaction fees generated by the exchange.
According to the announcement, the integration has been made possible by the recently launched Substrate Oracle Pallet. On April 2, 2021, Polkadot announced that Chainlink has made their extensive collection of on-chain Price Feeds available as a Substrate oracle pallet.
This pallet will provide all projects within the Polkadot ecosystem, including parachains, substrate chains, and Kusama parachains a standardized way to natively integrate Chainlink oracles.
As Crypto Economy reported, Karura, the canary network of Polkadot DeFi hub Acala, has also integrated Chainlink price feeds through this Substrate Oracle Pallet.
To obtain reliable asset prices, smart contracts need to communicate with the outside world. For this, they require an oracle solution. After exploring various oracle solutions, the Coinversation team selected Chainlink’s industry-standard oracle network as it provides ready-made oracle networks that are time-tested in production and proven to secure billions of dollars in on-chain value for leading DeFi apps.
Lin Chen, the co-founder of Coinversation, commented:
“We look forward to integrating Chainlink Price Feeds to create a highly robust and feature-rich synthetic asset issuance and trading platform for the Polkadot ecosystem. As the most mature oracle solution, Chainlink’s highly precise, tamper-proof, and up-to-date price data ensures Coinversation’s synthetic assets and decentralized exchange services are fair and reliable for all users.”