Kalata Integrates Chainlink Price Feeds to Power Synthetic Asset Trading

Kalata
5 min readJul 2, 2021

We are excited to announce that Kalata has deployed Chainlink Price Feeds on Binance Smart Chain (BSC) as the default oracle solution for all markets in our synthetic asset trading protocol. With the high-quality, tamper-proof data brought on-chain by Chainlink’s decentralized oracles, Kalata Protocol can accurately price in real-time various synthetic assets like cryptocurrency, stocks, commodities, derivatives, and virtually any asset in the future that our ecosystem demands.

The initial integration includes the use of Chainlink Price Feeds to support the following synthetic assets, with more coming in the future: ARKK (ARK Innovation ETF), BIDU (Baidu), PACB (Pacific Biosciences of California), SPCE (Virgin Galactic Holdings Inc), and TSLA (Tesla). Integrating Chainlink’s time-tested oracles will strengthen the precision and robustness of Kalata’s synthetic asset trading platform, marking a major milestone towards our goal of making DeFi trading available to everyone and getting us closer to achieving one of our core missions — execute every trade with real-time price feeds.

Using Chainlink In Our Synthetic Asset Trading Protocol

Kalata is a derivatives trading platform for synthetic assets supported by a peer-to-pool trading engine, where trades are executed with zero slippage against a real-time price feed. With Kalata Protocol, you can experience the ease of trading synthetic assets anywhere with 24/7 access and without traditional barriers. However, one of the most critical aspects to the success of Kalata is an oracle.

“An oracle is a person or agency considered to provide wise and insightful counsel or prophetic predictions or precognition of the future, inspired by the gods. As such, it is a form of divination.”

— Wikipedia

According to the definition above, oracles were a bridge between our world and the spiritual realm — a source of knowledge, truth, and wisdom. In our context, a blockchain oracle is a secure blockchain middleware that facilitates communication between smart contracts and off-chain data. Oracles enable off-chain connectivity for smart contracts by fetching data from external connection points called Application Programming Interfaces (APIs), computing upon that data (e.g., aggregating it, signing it, and other potential types of modifications), and delivering it to the blockchain.

In essence, oracles are how DeFi platforms like Kalata know what the global market price is for various assets. Synthetic assets can track any underlying asset given a high-quality price feed made available in a secure and reliable manner by an oracle.

Kalata Protocol allows anyone to mint synthetic assets called kAssets by locking in collateral (kAssets or BUSD) in a Collateralized Debt Position (CDP) to gain exposure to the underlying asset without having to own it. If the collateralization ratio (C-ratio) of a CDP falls below a certain threshold, the collateral is liquidated. The real-time value of the collateral, the prices of kAssets, the C-ratios of CDPs, and liquidation prices are calculated according to price data provided by Chainlink.

Chainlink is the industry-standard decentralized oracle solution, already securing tens of billions of dollars of value across all of DeFi and containing an extensive library of premium price feed oracles. Chainlink is also blockchain-agnostic, making our future expansion to other blockchains seamless.

Some of the major benefits of using Chainlink Price Feeds throughout Kalata include:

  • High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
  • Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record for reliability, even during high gas prices and extreme network congestion.
  • Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or the oracle network.
  • Reputation — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.

“We at Kalata understand the critical importance of having the industry-leading oracle solution integrated on our platform to guarantee that the price feeds powering our synthetic assets are secure, high-quality, and tamper-proof.” said Cyber Root, Kalata’s CEO. “We are looking to expand our platform with more synthetic assets secured by Chainlink in the future to keep up with our larger goal of reaching out to all of our target users across all markets.”

Our initial deployment is on Binance Smart Chain, with a planned future deployment on Near Protocol and other efficient chains in the future. For those interested in learning more, please visit Kalata’s official website and social media.

About Chainlink

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.

Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.

Solutions | Docs | Twitter | Discord | Reddit | YouTube | Telegram | GitHub

About Kalata

Kalata is a derivatives trading platform based on #BSC, allowing everyone to gain on-chain exposure to a vast range of assets.

Website|Medium|Twitter|Telegram|Github|Whitepaper|Testnet|

--

--

Kalata

Derivatives trading platform based on #BSC, allowing everyone to gain on-chain exposure to a vast range of assets.