Forward recently announced its integration with Chainlink Price Feeds on BNB Chain to power its DeFi (decentralized finance) exchange and LBP or Lending and Borrowing Protocol. The team also plans to partner with Chainlink Keepers to automatically liquidate positions and loans and roll over loans. This integration with the leading decentralized oracle network will allow Forward to power its DeFi platform with cost-effective, decentralized and hyper-trustworthy automation and price data.
The DeFi exchange integration will allow Forward to instantly match its users’ short and long perpetual futures orders using the platform’s APH or automated position hedger. The platform will need liquidity to instantly support new positions, creating real borrowing demand for the Lending and Borrowing Protocol (LBP). This will provide access to returns by lending to LBP or opening positions in a range of underlying crypto assets through the exchange. This will ultimately eliminate the need for having a crucial market maker or limit order book, thereby reducing trading costs for platform users.
Since derivative contracts and the formal contract are based on asset price movements, the exchange must use accurate pricing information to ensure that its users get fair market prices for their positions. It is also essential that the protocol works smoothly even when there is network congestion during large market movements. This can happen anytime during sudden market movements, as traders use contracts to take on more risk or hedge when market conditions are volatile.
After going through several data solutions, Forward decided to unite with Chainlink Price Feeds to offer accurate market information only for these USD pairs – BUSD, USDT and BNB. Price Feed is a market leading solution provided by Forward which offers a range of essential features such as high quality data, secure node operators, decentralized network and reputation system.
Forward LBP and swap plan to operate efficiently by executing contracts when the underlying assets reach a specific price. Also, when loans are open for an extended period, such as 28 days, the exchange automatically recalculates the interest rate to roll over the loan. Assuming the low-cost exchange secures the relevant financial contracts, a cost-effective and hyper-reliable automation solution is needed.
Chainlink Keepers function as an economically incentivized, hyper-reliable and decentralized automation bot that initiates smart contracts when vital on-chain functions are performed by the exchange which usually occurs at constant time intervals or depending on external events. Forward decided to integrate Chainlink Keepers because of decentralized execution, increased efficiency, stronger security and lower costs.
The Forward exchange development team aims to become a leading decentralized derivatives exchange and revolutionize trading platforms. The platform offers a wide range of financial contracts on its DeFi trading platform and will have to integrate price data for the underlying assets.
Chainlink has become an industry standard for selling, accessing, and building Oracle services needed to support hybrid smart contracts on blockchain networks. Oracle Networks on Chainlink offer smart contracts that can be reliably connected to external APIs to enable feature-rich applications.