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Terra-Chainlink Suspension Causes $11M in Losses for Venus Protocol

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Venus, a decentralized finance (DeFi) protocol, has been added to the growing list of those affected by the Terra ecosystem’s collapse this week.

The decrease in LUNA token values has had a significant impact on the Venus Protocol. On May 13, the DeFi platform said that a price disparity on the platform had resulted in a multi-million dollar loss due to an exploit. Venus is a BNB Chain-based decentralized algorithmic money market protocol.

The protocol derives its pricing information from Chainlink oracles, which is where the issues started. Due to the LUNA token’s severe market circumstances, Chainlink has paused the price feed.

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Terra-Chainlink Suspension Causes $11M in Losses for Venus Protocol 2

The LUNA price on Venus was last reported at around $0.107. However, the market price at the time was closer to $0.01. “The protocol was suspended using PauseGuardian through multisig to de-risk this circumstance,” it said.

Terra fell, bringing Venus alongside

According to Venus, an inquiry revealed two substantial deposits of Terra’s LUNA at the incorrect price, which were utilized to borrow assets on the platform.

Chainlink’s suspension of LUNA pricing updates cost the protocol $11.2 million, according to industry expert Colin Wu.

Venus halted the process and said that it had a “Risk Fund” that would be used to make up for the shortfall caused by the occurrence.

It also stated that a proposal to restart the system had been submitted and that it would begin operations in 48 hours. It stated that all liquidity is still held inside the protocol and that no liquidations will take place during this time.

Venus Protocol is the second-largest platform on the Binance Chain, according to DefiLlama, with roughly $1 billion in total value locked. Due to the event, TVL has dropped by 28% in the last 24 hours; however, further withdrawals have been halted.

The protocol’s native token, XVS, has risen 26 percent in the last 24 hours, contrary to forecasts. According to CoinGecko, XVS was trading at $4.17 at the time of publication.

XVS, on the other hand, has lost 45 percent in the last week due to the larger crypto market crash. The token was currently down 97 percent from its all-time high of $147 in May 2021.

Meanwhile, Terra’s LUNA has plummeted to zero, making it one of the few crypto-assets to have seen a complete loss.

Ethereum’s Lido Finance scores support of Chainlink Price Feeds

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Ethereum’s [ETH] staking platform Lido Finance announced its support of Chainlink Price Feeds to expand stETH adoption across decentralized finance or DeFi protocols. For the uninitiated, stETH is a token that represents the staked ETH in Lido, combining the initial deposit value with rewards. Thus, the token enables users to earn DeFi yield rewards.

According to the blog, with the stETH/USD Price Feed launched on Ethereum mainnet, DeFi projects would be able to cite this oracle contract at any given time to get the latest price of stETH when executing on-chain functions. As a matter of fact, the stETH/USD Chainlink Price Feed is already being collectively used and sponsored by a decentralized community of users, which includes several DeFi projects like Aave, Compound, and Enzyme.

Lido Finance is a leading liquid staking protocol that allows users to stake Ethereum [ETH], Solana [SOL], and Terra [LUNA] and receive staked liquidity tokens in return at a 1-to-1 ratio. It is fully DAO-operated and currently supports staking for ETH, LUNA, and SOL.

Chainlink’s data reliabilty

As per the blog, the reason for the integration with Chainlink is to expand ‘the utility of stETH, as users can earn the normal staking rewards from Lido while also deploying stETH as collateral in DeFi’. Apart from that, It would also enable new DeFi protocols to add support for stETH and have immediate access to a secure and reliable oracle solution. Reading along the same lines, Lido added,

“We selected Chainlink as it’s the most time-tested decentralized oracle network in the industry, demonstrating verifiable reliability across multiple blockchains during the most extreme network congestion and market volatility. Not only do Chainlink Price Feeds supply real-time price data with wide market coverage, but it’s a blockchain agnostic oracle solution, which will be critical to aiding in our multi-chain expansion.”

The staking platform is further planning to expand support of Chainlink Price Feeds in the future for its multiple platform initiatives, such as decentralized price oracles for bLUNA, stSOL, and the assets of blockchains that Lido plans to onboard that includes Polkadot [DOT], Avalanche [AVAX], and Polygon [MATIC].

Ethereum’s Vitalik Buterin: Uniswap’s Native [UNI] Should Become Oracle Token

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Ethereum’s Vitalik Buterin is making a strong case for Uniswap’s native, UNI token.

While talking about the importance of a highly secure price oracle in the success story of the decentralized finance realm, Ethereum Founder Vitalik Buterin went on to point that DeFi protocol, Uniswap’s native token ‘UNI’ is in an “excellent position” to be a token for an oracle.

The Ethereum executive called for the need of a robust token-based decentralized oracle for a deFi project on the Uniswap Governance Forum today. He mentioned that it should be based on a token with a large market capitalization.

Uniswap – Highly Secure Oracle System?

While talking about the importance of efficiency of an oracle, Buterin stated,

“An inefficient oracle can always be augmented with a game where one party claims a value and only if another party disagrees is the oracle actually called. Cost of attack, on the other hand, is absolutely essential to maximize, and thus market cap is key. “

The founder then doubled down on two of the high market cap tokens on Ethereum which are Chainlink [LINK] and Uniswap [UNI].

Buterin asserted that the supporting oracles would not just be an act of “altruism” for Uniswap but would also benefit the decentralized exchange with a stablecoin ecosystem that is strong.

Chainlink has dominated the oracle realm for some time now. However, there is a need for a “simple alternative specialized for high-value”, according to the exec.

Meanwhile, Uniswap v3 has been touted as heavily optimized toward ultra-high capital efficiency for stablecoin, hence, it is likely to draw very high amounts of fee revenue from these trades. He also went on to add that if the volume picks up and the robust synthetic assets surface on-chain, then this would be a more bring about more valuable prospects for Uniswap.

Buterin also stated that while the base layer of Ethereum needs to remain governance-minimalist, layer 2, on the other hand, should be more ambitious and that Uniswap, which happens to be one of the largest decentralized exchange on the Ethereum ecosystem, could also take on more responsibilities which includes price oracle offerings.

According to Buterin, this could be a potential step towards Ethereum’s objective of not just a decentralized finance ecosystem and also an increasingly decentralized governance [DeGov] ecosystem.

DeFi Platform Cream Finance Announces Integration of Chainlink Price Feeds

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Peer to peer lending and exchange platform, Cream Finance announced the integration of Chainlink Price Feeds on the Ethereum mainnet as its primary oracle solution throughout all Cream markets.

According to the official release, the Chainlink network will be providing pricing data on the Ethereum mainnet to C.R.E.A.M for the ETH-denominated markets such as LINK, COMP, YFI, BUSD, USDT, USDC, UNI, and AAVE.

Announcing the same, Cream Finance stated,

“We are pleased to now use Chainlink’s market-leading decentralized network of price oracles to leverage high-quality off-chain pricing data for calculating the current volume-adjusted market prices of assets.”

Utilizing Chainlink, Cream will be able to leverage Sybil which is a decentralized network of independent resistant oracle networks to derive market prices for many leading cryptos. The blog post further mentioned that each Chainlink oracle node sources price data for multiple premium off-chain data aggregators.

This is to verify that the data source itself indicates a volume adjusted average aggregated from across both CEXs and DEXs. Following which, the responses of the individual nodes’ are then aggregated to construct a weight-adjusted on-chain price that Cream Finance’s smart contracts can reference when making loans or receiving deposits.

In return, Chainlink will guarantee that Cream Finance has access to robust and accurate price data to support a safe and reliable liquidation process, even during irregularities and anomalies be it flash loans, high gas prices, periods of network congestion, and centralized infrastructure outages.

Furthermore, Cream Finance has also confirmed that LINK holders will be able to use their tokens as collateral on its platform following the integration.

TWJ had earlier reported crucial collaboration of Cream Finance according to which Yearn Founder Andre Cronje revealed that the developers of both Yearn and Cream have teamed up to launch Cream v2. The main objective of this merger was to focus on lending and leverage products. Additionally, Cream v2 would enable earning yield with leverage and was slated to be a launchpad for future collaborative lending products of the two DeFi platforms.

Chainlink’s Oracle Network Adds Another Feather To Its Cap With Integration Into Beam

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Chainlink’s oracle network has been integrated into several platforms. Over 315 projects, including, 74 blockchains, 98 DeFi, 23 data providers, 44 nodes, and several others have integrated oracle. The crypto-verse has been steering towards DeFi. A “Confidential DeFi platform”, Beam is all set to incorporate Chainlink’s oracle network.

Beam Joins The Chainlink Oracle Family

Back in June, Beam steered towards confidential assets specifically during its third hard fork during the EE 5.0 release. Now the platform intends to employ Chainlink’s Oracle network for its confidential stablecoin protocol and its ERC-20 bridge for transferring assets between BeamX and Ethereum. A recent blog post, penned down by Beam, pointed out the need for accurate and secure price data that would aid in the execution of smart contract protocols in the DeFi dApps sector. Beam revealed that it intended to go with Chainlink following the billions of dollars that it has secured in on-chain value.

Detailing the execution of the project the post further read,

“Beam will implement the Price Feed workflow by providing a Chainlink External Adapter that allows Chainlink nodes to write information directly into the Aggregator Contracts. These Aggregator Contracts will run on the BeamX blockchain and be consumed by application-specific smart contracts.”

Elaborating on the selection of Chainlink’s oracle network, Beam further revealed that apart from providing premium data and decentralized security, the network was trusted by many. The Chainlink oracles have stood as a substantial barrier against Sybil attacks as well as congestion of networks. Furthermore, Chainlink has reportedly provided the developers of Beam with live, time tested decentralized price oracles that secure large funds in on-chain value.

Guy Corem, the Board Director at the Beam Foundation pointed out the importance of privacy and confidentiality. He added,

“A core part of building confidential DeFi applications is highly available and tamperproof price feeds, with market coverage across all trading environments as opposed to a single exchange.”

Ethereum, Chainlink, Bitcoin Cash Technical Analysis on 27th September 2020

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As we near the end of Q3 2020, market volatility remains at its peak with major altcoins exhibiting extreme sideways movement over the past month. While the last 24-hours were rather timid, price action has been active all week, with several coins picturing positive moves on their short-term chart. We analyzed the markets of Ethereum, Chainlink, and Bitcoin Cash to attain more clarity on what the short-term future holds.

Ethereum hourly chart

LINK 6 e1601206157255

For Ethereum, the past 48-hours or so has been positive with the price slowing rising within the trendlines of an ascending channel. At press time Ethereum was valued at $351 and over the course of August and September, ETH has traded the most between $350-$360, strengthening this particular range as a bottom. With a market cap of $39 billion, Ethereum maintained its comfortable 2nd spot in the rankings, and the altcoin represented a trading volume of $9 billion over the past day.

Market Indicators remained neutral at the moment but hinting towards a reversal. Awesome Oscillator suggested that the bearish momentum is all but dismissed in the charts but Chaikin Money Flow indicated that outflows continued to dominate inflows in Ethereum’s market.

Chainlink hourly chart

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Chainlink has fallen a little from grace over the course of September, sliding down to 7th in the rankings. While the altcoin was valued over $10 at the moment, its market cap held a valuation under $4 billion, at $3.59 billion. The last day witnessed at an uptick of 3.77% which was backed by a high trading volume of $1.08 billion.

However, when you talk about chaotic market movement, Chainlink is a prime example and it is largely due to the fact that the asset has not traded in this price range before the last couple of months. At the moment, its valuation is exhibiting a symmetrical triangle, which is a clear sign of uncertainty as the price may go up or down.

The Bollinger Bands were observed to be parallel which suggested a reduction in market volatility but the Relative Strength Index or RSI suggested improving buying pressure. The asset will possibly re-test $11.5 if a bullish breakout takes place.

Bitcoin Cash hourly chart

BCH 6 e1601206179888

Lastly, Bitcoin Cash managed to reclaim a position in the top 5 cryptocurrencies. The past 24-hours were a little turbulent with the price rising by 4% at first then dropping by 2.5% around 6 hours later. The volatility was observed in the market indicators as well.

While MACD suggested a bearish trend with the signal line hovering over the blue line, Stochastic RSI suggested that BCH is going to overturn the current trend and undergo a bullish period.

With an average trading volume of $662 million, Bitcoin Cash had a market capitalization of 4.05 billion, while being valued under $220 at press time.

Chainlink: Will LINK Survive Going Forward After 40 percent Drop in 2 weeks?

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2020 will be largely known for the exploits of Chainlink at the top of the altcoin bracket. Valued under $2 in March 2020, the token rallied itself to a 10 times increase of $20 by August 2020. However, the view was top was short-lived as in the past couple of weeks, the turnaround has been largely bearish.

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From the above trading view chart, the decline is fairly easy to identify as a drop of 44.73 percent since August 16th tarnished most of its good performance over the course of August 2020. Such a significant drop is currently causing changes elsewhere in Chainlink’s ecosystem.

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According to Santiments recent tweet, Chainlink exhibited its 14-monthly high with respect to token age consumed and such a change is in direct correlation with users exiting the market. When digital assets record a high in token age consumed, it can be assumed that the tokens are re-entering the market from user addresses.

What is next for Chainlink after its drastic decrease in value?

From a technical point of view, there were more alterations observed in terms of on-chain metrics. On 23rd August, Chainlink was observed to record an all-time high in terms of daily active addresses but the market statistics had changed now.

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As illustrated by intotheblock analytics, the average number of active addresses had dropped from a high of 24,000 thousand addresses to a measly 8,500 addresses at the moment. This is a clear indication of the drop in network activity and in the long run, it can cause damage to Chainlink’s growing reputation.

However, all of Chainlink’s good work cannot be dismissed due to a week of declined activity. It is important to note that its valuation improves by 500% in 2020, and unless it topples down to $8 dollars, the overall trend is still significantly positive.

Additionally, the importance of its association with DeFi has to be taken in a serious note. The current pullback can be assumed as a timely correction that hardly dampens the interest with DeFi. When the digital asset class picks up pace in the market again, there is a strong chance Chainlink will recoup its high valuation range again.

Price Analysis 26 August: XRP, Chainlink, Cardano

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There wasn’t anything positive above the last 24-hours in the cryptocurrency space as the collective altcoin industry clocked in a loss of $15 billion. Top cryptos faced the brunt of the force with XRP, Chainlink, and Cardano witnessing significant drops. At the time of the press, there is active recovery taking place but the overall trend remains strong bearish at the moment.

XRP 1-hourly chart

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XRP is currently nursing a long-term downtrend where the valuation has reached a monthly low in the charts. The token was valued at $0.275 at the moment, while the market capitalization was around $12.4 billion.

With a trading volume of $1.39 billion, XRP witnessed a negative return of 2.75% over the last 24-hours. Speaking about recovery, The assets’ Awesome Oscillator suggested that bullish momentum was rising up again in the charts as the green candles were evident in the analysis.

On the other hand, the Aroon indicator wasn’t so pricing friendly as the bearish crossover was attained between the orange line and blue line.

Chainlink hourly chart

LINK 6 e1598433122648

One of the top performers of the year, Chainlink did not escape the bearish assault as well. Chainlink has been surprisingly uncorrelated to other crypto assets over the past few weeks, but the asset dropped alongside the industry, clocking in a 4.20% decline. For Chainlink, the valuation of $20 seems like a distant dream, as it is presently valued at $14.33 with a market capitalization of $5.05 billion.

In spite of the bearish situation, the MACD indicator for LINK indicated a bullish presence as the MACD line was observed to be above the signal line in the charts.

Chaikin Money Flow of CMF suggested a neutral stance between the capital coming in and going out.

Cardano hourly chart

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Lastly, Cardano’s long-term decline continued at the asset facilitated a whopping 7.54% collapse. With ADA tokens, August hasn’t bee exactly exciting considering it rallied fervently during May-June 2020.

With Relative Strength Index or RSI suggestive of a recovery after the asset was over-sold, the selling pressure remains dominant in the market. Parabolic SAR offered a bit of relief, exhibiting a bullish turn with the dotted line observed under the candles.

With a market capitalization of $2.92 billion, Cardano maintained its position outside the top-10 at 11th.

Bitcoin SV, Ethereum, Chainlink Technical Analysis on 21 August 2020

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The altcoin rally is finally beginning to slow down after a rapid start to August in 2020. In the last 7-days, top altcoins have faced massive drops in terms of price valuation, while others suffered a quick pullback after registering a new high. Ethereum was one of the unlucky ones to witness that fate as its quick rise to $442 has been largely dismissed in the past few days. In the meantime, Chainlink registered a drop of 8% percent as well, after its heroic climb to $20.

Ethereum 

Ethereum
Ethereum hourly chart

It took Ethereum 14 days to break above $400 resistance but when it did, it went on to rally beyond the immediate resistance. Reaching a high of $442, users believed that the ecosystem had built up high bullish momentum over the past 2 weeks’ consolidation. Sadly that wasn’t the case as five days later, Ethereum crashed below the support of $419, briefly testing $397 as well.

With a market cap of $43 billion currently worth $415, Ethereum ‘s market is still struggling to show strong signs of bullishness, as another return below $400 seems likely. Bollinger Bands indicated reduced volatility but the relative strength index indicated saturation. An increase in selling pressure may bring the price down again, as the Parabolic SAR indicated a bearish trend.

Chainlink 

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Chainlink hourly chart

For Chainlink, the pullback was more dramatic. The asset has reached 5th in the rankings recently(6th at the moment) on the back of a bullish rally that took its price to $20. However, since then it has been a week of downhill. Chainlink is valued at $15.50 at the moment, briefly testing $14.95 over the past few hours.

The downtrend in the above chart is clear as day as the asset undergoes continuous decline but Bollinger Bands opened the gates for more volatility. Right now, Chainlink continues to bear a negative sentiment with MACD line hovering under the signal line and Awesome Oscillator indicating bearish momentum.

Chainlink had a market cap of $5.43 billion with a trading volume of $1.623 billion in the past day.

Bitcoin SV 

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Bitcoin SV hourly chart

Bitcoin SV did clock in $249 on 1st August but hasn’t come close to that valuation in the past 3 weeks. Currently consolidating just $210, BSV is contradictory in terms of its market sentiment. Aroon Indicator was bearish at the moment but exhibited that a trend reversal might take place anytime.

Chaikin Money Flow of CMF suggested steady capital in-flows, meaning the asset remains pretty relevant. With a market cap of $3.89 billion, Bitcoin SV maintained its 8th position in the chart, registering a growth of 3 percent in the past day.

Chainlink [LINK] and Cardano [ADA] Enjoy Greener Pastures as altcoins show how its done

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July has been a consistent week for the cryptocurrency industry as several of the major tokens maintained their price support. Even though users expected resurgent movements, they were forced to be content with a minute increase in market cap and volume.

On Monday, users expected bigwigs like Bitcoin, Ethereum and XRP to gain but it was the altcoin gang that stood the test of the bear. An analysis of the cryptocurrency charts showed that IOHK’s Cardano and LINK were one of the best performers at the start of the new week.

As the altcoins resurgence began, Cardano led the charge as the sixth-ranked cryptocurrency saw a 6.6 percent value increase over the previous 24-hours. This spike was an added boost to the cryptocurrency’s surge, which had gained by a mammoth 34 percent in the last week. At press time, ADA was trading for $0.13 with a total market cap of $3.43 billion. The bull run also lifted the daily trading volume to $473.76 million.

ADA

Cardano’s Relative Strength Index had broken above the overbought zone, making it a profitable buy-in sector for investors. This was also a sign that there was a reversal in the negative sentiment associated with purchasing ADA tokens. The Chaikin Money Flow indicator was also positive for Cardano as the graph was much higher than the zero line.

Despite its reputation of being low-lying, Chainlink was the best performer in the top 10 club. The tenth-placed cryptocurrency was well above the pack with a daily growth rate of $24.5 percent. Chainlink was also the biggest weekly grainer with a stellar 62 percent spike in the last seven days. At the time of writing, LINK was trading for an increased $7.75 while holding a market cap of $2.7 billion. The daily volume had clinched a better spot with a value of $1.612 billion.

Chainlink

Chainlink’s CMF was well above the zero line as the capital coming into the market overtook the capital leaving the market. At the same time, the Relative Strength Index followed a similar path to that of Cardano’s, breaking above the overbought threshold zone. The week has started off well for the altcoins giants and it is safe to assume that there will be a slight flattening soon.