We are excited to announce that Firefly, a derivatives exchange powered by Substrate, will integrate with Chainlink’s market-leading decentralized oracles to provide Firefly traders with highly available, tamper-resistant, and decentralized price feeds with sub-second updates. Chainlink Price Feeds will also allow Firefly to support Perpetual Contracts for any of the Polkadot-based price feeds, giving users the ability to seamlessly trade various assets across cryptocurrencies, stablecoins, indexes, forex pairs, and more.
Securing Firefly with Chainlink Price Feeds
For each Firefly perpetual contract, Chainlink Price Feeds will be referenced during liquidations, collateralisation, and calculations of funding rate payments. One major benefit of Chainlink Price Feeds is that they are aggregated across multiple sources and exchanges, as well as weighted by volume and cleaned of outliers and suspicious volumes. Such data aggregation methodology provides traders on Firefly with protection from flash crashes and flash loan attacks on any single exchange. We are integrating Chainlink oracles directly into the L2 to enable sub-second oracle price updates and ensure minimal delay and slippage for liquidations and stop orders.
Supported by Polkadot’s shared security, high-throughput and low-latency transactions, micro-gas fees, and interoperability across networks, Firefly will provide traders with a derivatives DEX that is both performant and secure. Since an exchange is only as good as its data feeds, it's imperative that Firefly's price oracle solution maintains the same high security standards as Firefly itself.
To this end, we are integrating with Chainlink because it has proven itself as the industry standard in oracle solutions. Each Chainlink Price Feed is a decentralized network of security-reviewed, Sybil-resistant nodes providing an accurate, up-to-date, and manipulation-resistant data feed. Chainlink Price Feeds are not just decentralized at the network level either, but also at the data source and individual node levels. All data sources consist of data aggregators, which each provide market coverage across centralized and decentralized exchanges, and all nodes take a median of multiple different data aggregators. Chainlink’s novel architectural design with multiple layers of decentralization results in extremely reliable price feeds reflecting true fair market values even if individual data sources or individual nodes fail.
Using Chainlink’s extensive price feed coverage, and with the support of our market makers, Firefly users will soon be able to create perpetual contracts for any price feeds supported by Chainlink on Substrate. Overall, Chainlinking our derivatives exchange is an exciting prospect for the Firefly community as it broadens support to a variety of asset types and increases the reliability of our perpetual contracts, enhancing the trading experience for users.
“Chainlink Price Feeds not only provide extremely high-quality data, but have impressive resilience during market volatility and network congestion,” stated Niko Grzesiak, Co-Founder of Firefly. “Chainlink’s consistency and strong track record made our decision to integrate their oracle solution an easy choice to secure the future of our platform.”
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries. To learn more about Chainlink, visit chain.link
Firefly is a decentralized exchange (DEX) for perpetual swaps and options powered by Substrate. Supported by Polkadot’s shared security, high-throughput and low-latency transactions, micro-gas fees, and interoperability across networks, Firefly will provide traders with a derivatives DEX that is both performant and secure.
If you are interested in trading perpetuals, options, or learning more about Firefly, then please join the growing community on Discord, follow the Telegram announcement channel, and sign up for updates at https://bluefin.io/.
Disclaimer: The products available on Firefly are not available for use by US Persons or residents of any country or jurisdiction subject to US sanctions.