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 associate itself with Chainlink Keepers to liquidate positions and loans and rollover loans automatically. This integration with the top-tier decentralized oracle network will allow Forward to power its DeFi platform with cost-efficient, decentralized and hyper-reliable automation and price data.
DeFi exchange integration will allow Forward to instantly match its users’ short and long perpetual futures orders by using the platform’s APH or automated position hedger. The platform will require liquidity to support brand-new positions instantly, thereby creating an actual demand for borrowing for the lending and borrowing protocol (LBP). This will allow access to yields by lending to LBP or open positions on a range of underlying crypto assets through the exchange. This will ultimately eliminate the need to have a crucial market maker or limit order book, thereby lowering transaction fees for the platform’s users.
Since derivatives contracts and the formal contract is based on price movements of the assets, the exchange must utilize accurate price information to ensure that its users get fair market prices for their positions. It is also essential that the protocol operates smoothly even during network congestion during significant market movements. This may occur anytime during sudden market movements as the traders use contracts to take more risks or hedge while market conditions are volatile.
After browsing 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 that offers an array of essential features like High-Quality Data, Secure Node Operators, Decentralized Network, and Reputation System.
Forward LBP and exchange plan to operate efficiently by executing contracts when underlying assets reach a specific price. Additionally, when loans are opened for an extended period, for example, 28 days, the exchange will automatically re-calculate the interest rate to roll over the loan. Assuming that the low fee exchange secures relevant financial contracts requires a cost-effective, hyper-reliable automation solution.
The Chainlink Keepers function as an economically incentivized, hyper-reliable, and decentralized automation bot that initiates smart contracts when vital on-chain functions are being performed by the exchange that usually occurs at consistent time intervals or depending on the external events. Forward has decided to integrate Chainlink Keepers due to Decentralized Execution, Increased Efficiency, Enhanced Security, and Reduced Costs.
The development team at the Forward exchange aims to become a top decentralized derivatives exchange and bring revolution to trading platforms. The platform offers a wide range of financial contracts on its DeFi trading platform and will need to incorporate price data for the underlying assets.
Chainlink has become an industry standard for selling, accessing, and building Oracle services required to support hybrid smart contracts on blockchain networks. Oracle networks on Chainlink offer smart contracts that can be reliably connected to external APIs to allow feature-rich apps.