Tellor, a blockchain project for decentralized lending, today announced its upcoming integration with Chainlink, the market-leading oracle provider, as per a release shared with CryptoSlate.
Chainlink will initially provide Tellor with three cryptocurrency price feeds via its Price Reference Data oracle networks, these feeds will include popular trade pairings DAI/ETH, USDC/ETH, and LINK/USD.
Tellor is an open-source protocol that interacts with consumer data to calculate default risk and offer unsecured crypto-asset loans. Users can supply liquidity to the protocol’s lending pools and earn interest from repaid loans.
The firm leverages borrowers’ credit history to calculate an annual interest rate (APR) that is based on market conditions vs. consumer credit risk, reducing or eliminating the need for collateral, as per the release.
Ivan Perez, the co-founder at Tellor, said that for the consumer, “this means an affordable user experience that leverages positive credit history to lower DeFi’s exorbitant collateral ratios.”
Integration of Chainlink’s Price Reference Data feeds will allow Tellor to capture real-time price information on the protocol’s assets under management, ensuring that all APR calculations for unsecured loans reflect real market conditions.
Chainlink’s oracles capture this information off-chain from numerous high-quality data aggregators and make it available on-chain for any smart-contract-enabled blockchain.
This allows Tellor to leverage a decentralized network of independent, Sybil-resistant oracles to obtain volume-adjusted market data that is accurate, highly available, and resistant to various data manipulation attacks.
Lots of market space to capture
According to the on-chain analytics firm DeFi Pulse, there is now more than $6 billion worth of crypto locked in existing DeFi environments, up 500% since June. However, that is still only a fraction of the $215 trillion debt market Tellor aims to disrupt.
Daniel Kochis, Head of Chainlink Business Development, commented on the integration:
“We’re excited to empower Tellor with secure and reliable oracles so they can expand the already booming DeFi ecosystem through the introduction of undercollateralized loans.”
Incubated by A16Z’s crypto startup, Tellor recently announced its secured $1 million seed round led by venture capital firm Frameworks Ventures.
Following the successful integration of Chainlink, Tellor will operate as a DeFi adoption bridge, enabling the acquisition of new users by lowering the industry’s barrier to entry and maximizing consumer capital efficiency.
Meanwhile, the announcement marks yet another partnership for Chainlink this year. The project’s decentralized oracle service has been on a roll in 2020, with DeFi projects onboarding its data feeds to support a verifiable and efficient ecosystem.
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