reading time

Article

reading time

May 13, 2020

Sponsoring Chainlink’s LINK/USD Price Reference Data

separator
reading time

4 min

reading time

Ian Read

We’re excited to announce that LinkPool is now sponsoring and has integrated the LINK/USD price reference feed provided by Chainlink. In joining the growing list of sponsors for Chainlink’s reference data, LinkPool is assisting in further decentralizing the network, supporting the network of node operators providing the price data, and sharing the costs that make the LINK/USD data available on-chain for the wider ecosystem.

What Does That Mean?

Chainlink provides decentralized oracle networks that connect external data sources with blockchains and other distributed ledger technologies. By creating decentralization at the oracle level, external data can be trusted and end-users can have confidence that the data they require will be reliably delivered to their smart contracts.

Chainlink’s oracle networks provide the largest collection of price data available on-chain, spanning commodities, fiat currencies, and cryptocurrencies. Each price feed is powered by a decentralized network of node operators who fetch information from different high-quality data sources which are aggregated and written on-chain. Once the data is written on-chain, smart contracts can reference the information to perform business processes.

To keep these oracle networks properly functioning, teams Sponsor the specific feeds they consume in their applications. As such, we are announcing today that LinkPool will be sponsoring the LINK/USD price feed.

How We Are Using Chainlink

We believe the number of businesses using smart contracts will grow exponentially in the months and years to come. We also believe business processes using smart contracts will increasingly rely on external data to power their core functionality. It was only natural for us to examine our own business processes to determine how we can make them more efficient, fair, and improve the experience for our users.

Initially, we will use the LINK/USD price reference data to determine the fee in LINK for verifying nodes listed in the Chainlink Market.

When we launched the Market in August, we created a way for operators to list their node and specify the type of jobs they are configured to perform. This will allow smart contract creators and end-users to discover and select the nodes that support the data sources they require. At the time, we set a flat fee of 15 LINK to list and verify each node added to the Market. Since then, the LINK price has varied, and with it, the fiat cost to list and verify nodes. Going forward, we will use the LINK/USD price from the Chainlink network to peg the fee to $30 USD and will continue to denominate it in LINK.

It’s important to our business that fees in the Market are paid in LINK. The fees are sent to our Owners smart contract that proportionally distributes LINK to the holders of the LP token. More details on the LP token can be found in our crowdsale and staking articles.

Future Use

We’re pleased with our first use of the LINK/USD price feed, but are most excited about all the ways we can use the data as LinkPool products hit the market and evolve. We don’t want to give too much away, but here are some of the ways Chainlink’s decentralized LINK/USD data can be used by LinkPool:

  • New, optional features and subscriptions in the Market will also be pegged to USD and paid in LINK
  • The cost for jobs in the Market can be displayed both in LINK and USD
  • Our staking dApp and dex can display the LINK price in USD, showing current and historic transaction data
  • Our Node as a Service will be completely managed by smart contracts, and monthly subscriptions will be paid in LINK and pegged to USD
  • … and much more

We’re proud to be sponsoring the LINK/USD price reference data, the network of decentralized node operators, and the wider Chainlink ecosystem. We look forward to integrating the trusted price data into our various products as they become available.


 

About Chainlink

If you’re a developer and want to connect your smart contract to existing data and infrastructure outside the underlying blockchain, reach out to us here! We can help you quickly, yet securely launch your data-enabled application or Chainlink Price Reference Data Contract on mainnet today. You can also visit the developer documentation or join the technical discussion on Discord. Learn more by visiting the Chainlink website or follow us on Twitter or Reddit.

Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. It is well known for providing highly secure and reliable oracles to large enterprises (Google, Oracle, and SWIFT) and leading smart contract development teams such as Polkadot/Substrate, Synthetix, Loopring, Aave, OpenLaw, Etherisc, Conflux, and many others.

About LinkPool

LinkPool is a leading Chainlink service provider with the goal of providing tools and services that benefit the Chainlink ecosystem. Our aims include lowering the barrier to entry to staking on Chainlink nodes, easing the amount of technical experience required to run a Chainlink node, and providing smart contract creators with the tools to easily search and identify Chainlink nodes that can suit their data requirements.

Related Articles