QiDao Uses Chainlink Price Feeds to Help Secure Multi-Chain Borrowing Protocol

“We couldn’t imagine what it would take to design, build, and maintain our own oracle infrastructure for 50+ collateral assets. We definitely saved a lot of engineering time by integrating Chainlink.”
Benjamin

Core Team Member, QiDao

Key results

$70M
TVL secured
50+
collateral assets supported
6
blockchains

QiDao aims to lower the threshold to participate in decentralized finance by providing an easy-to-use multi-chain stablecoin protocol. The protocol enables the minting of MAI, a stablecoin soft-pegged to the US dollar. MAI relies on overcollateralized vaults, where users can deposit a wide range of supported collateral to borrow the stablecoin with 0% interest. The MAI design relies on economic incentive mechanisms and community ownership, as there is no centralized authority controlling the parameters of the protocol.

Situation

Challenge

QiDao needed a secure source of price data to help calculate the collateral backing its stablecoin.

Solution

QiDao integrated Chainlink Price Feeds to help secure collateral calculations with reliable and tamper-proof market data.

Business Outcomes

QiDao can efficiently scale its multi-chain stablecoin protocol and seamlessly add support for new collateral assets.

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Challenge

QiDao Needs Secure Price Data to Help Secure Its Multi-Chain Borrowing Protocol

  • QiDao needed high-quality price oracles to secure its loans.
  • To maintain its competitive advantage, QiDao needed a ready-made multi-chain oracle solution for its wide range of supported collateral assets.
  • Many existing oracle solutions are subject to single points of failure, exposing protocols to a wide variety of potential risks and exploits.

Stablecoins are a fundamental building block in the crypto asset economy, whether they’re used for payments or as collateral in DeFi. QiDao is a stablecoin protocol that allows users to unlock their liquidity and mint the stablecoin MAI by depositing collateral assets into an overcollateralized vault. QiDao supports a wide range of tokens as collateral—including interest-bearing assets—and the protocol charges no interest for borrowing.

To support its overcollateralized stablecoin, QiDao needed highly secure market data to help open, close, and liquidate loans on the platform and help ensure that the assets in its vaults are priced according to reliable and tamper-proof market data. In addition, robust price oracle infrastructure helps ensure that every MAI stablecoin is backed by at least $1 of value.

“Chainlink is the industry standard for decentralized oracles. We know we can rely on Chainlink Price Feeds for secure market data, which lets us focus on building our protocol without having to worry about our oracle infrastructure.”

Benjamin
Core Team Member, QiDao

Solution

QiDao Integrated Chainlink Price Feeds To Support Tamper-Proof Borrowing Operations

After considering a number of oracle solutions, QiDao decided to integrate Chainlink Price Feeds to help ensure protocol solvency and make the system more resilient against manipulation attacks and outlier events. 

Chainlink Price Feeds is the most time-tested decentralized oracle solution in the smart contract economy, backed by high-quality data, secure node operators, and a robust reputation framework. Price Feeds already help secure tens of billions of dollars of value in the DeFi ecosystem across 12+ blockchain networks and hundreds of Web3 applications. With their unparalleled standard of data quality and oracle infrastructure security, Chainlink Price Feeds provide highly accurate and secure price data directly to QiDao’s smart contracts, helping the stablecoin protocol better manage risk.

“If you want to have a thriving DeFi ecosystem on your blockchain, you must have Chainlink integrated to help supply secure external data and off-chain computation to dApps on the network.”

Benjamin
Core Team Member, QiDao

Business Outcomes

QiDao Can Continue To Expand Across the Multi-Chain Ecosystem While Seamlessly Integrating New Collateral Assets

With Chainlink’s time-tested infrastructure supporting its loans, QiDao is able to maintain its rapid pace of expansion across the multi-chain ecosystem and seamlessly add support for new collateral assets. Chainlink Price Feeds also saved the QiDao team significant development resources, as they were not required to design, build, and constantly maintain their own oracle network or work out how to access secure price data for certain collateral assets.

QiDao aims to make its platform the ideal destination for both individual users and institutions looking to unlock their liquidity against a wide range of digital assets. With the increased resiliency granted by Chainlink’s secure price oracle infrastructure, the team can have higher confidence that the protocol can efficiently scale to meet the growing demand.

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