CapMoney has announced that its flagship cUSD stablecoin will be powered by Chainlink Price Feeds on the Ethereum network. Designed for easy cross-border payments, cost-effective remittances, and as a dependable store of value within DeFi, the stablecoin is pegged to the US dollar at a 1:1 ratio.
By using Chainlink’s industry-leading oracle technology, the company aims to deliver on its promise of stability and trust by promoting the widespread use of stablecoins in the on-chain economy.
Why Choose Chainlink Price Feeds
The price feeds have a reputation because of their decentralized architecture and robust security. They aggregate data from multiple high-quality sources, from both centralized and decentralized exchanges, and use volume-weighted averages to ensure the most accurate tamper-resistant pricing data.
This technique ensures that each price update is validated by a network of independent, security-audited oracle nodes, which collectively reach consensus before publishing data on-chain.
By utilizing this multi-layered aggregation and validation process, Chainlink safeguards against several challenges, including market manipulation, flash loan attacks, and single points of failure.
Chainlink’s decentralized network takes action. cUSD’s smart contracts require a price update due to a market price deviation or a scheduled ‘heartbeat’. Each oracle node fetches price data from multiple aggregators, filters out anomalies, and submits its result.
The network then aggregates these submissions, removes outliers, and publishes the median value on-chain. This ensures cUSD’s peg remains accurate, even in the face of high market volatility or network stress.
Unlocked DeFi Opportunities
Chainlink Price Feeds enable CapMoney’s cUSD to utilize DeFi protocols that require consistent, current pricing data to sell new assets. This feature allows the inclusion of cUSD in lending platforms, automated market makers, and yield farming applications. Furthermore, it substantially increases its liquidity and use within the Ethereum ecosystem.
Smart contracts can now initiate actions based on real-world data by using Chainlink’s infrastructure programmability. This includes automating settlements or changing collateral requirements.
Besides enhancing cUSD’s technological foundations, the partnership with Chainlink sets a benchmark for other stablecoin issuers aiming to build a reputation and utility in the decentralized market.
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