Bamboo Relay now supports stop-loss functions via integration Chainlink’s Price Reference Data
Bamboo Relay, a relayer for decentralized protocols now supports stop-loss functions via integration with Chainlink’s Price Reference Contracts for high-quality price feeds.
According to the announcement on June 15, Stop-loss functions are automated trading strategies of user’s funds, having access to accurate price feeds is essential. Obtaining a truly accurate price isn’t as straightforward as it sounds. It requires the aggregation of prices from all trading exchanges engaging in price discovery, both centralized and decentralized, and consistently weighting them based on their current liquidity. Additionally, there must be a secure oracle mechanism to deliver the price data to the smart contract on-time without fear of manipulation.
Bamboo Relay is the first 0x relayer to add stop-loss functionality and bring it to the 0x ecosystem. While the initial integration will be limited to Bamboo Relay, future integrations will allow anyone on the 0x mesh framework to utilize Chainlink for this feature.
“We’re thrilled to integrate Chainlink’s world-class oracle technology to bring stop loss-functionality to 0x users — an essential tool for successfully managing assets. Chainlink ensures that all stop-loss orders are triggered by highly accurate data from a secure oracle mechanism, bringing the highest level of security and reliability to Bamboo Relay. Through this integration, the 0x ecosystem is better positioned as a viable alternative to centralized exchanges; traders now have access to the same set of tools available on CEXs, yet receive the added benefits of user control of their assets.” — Joshua Richardson, Founder of Bamboo Relay.
Integrating Chainlink’s oracle design allows Bamboo Relay to source highly accurate price feeds when triggering stop-loss functions. These price feeds provide extensive market coverage to the price discovery happening throughout the entire market as opposed to only one or a few exchanges. Since Chainlink’s Price Reference Contracts utilize decentralization at both the oracle and data level, there is no central point of failure in the delivery or sourcing of price data to the smart contract. The Price Reference Contracts store these prices on-chain, which allows Bamboo Relay to quickly read them for price references at little costs to the end users.
As AZCoin News reported on June 12, KyberSwap, powered by Kyber Network’s on-chain liquidity protocol was using Chainlink Price Reference Data to update asset prices in their UI. This provides KyberSwap users with more reliable price feeds for calculating slippage rates and further safeguards against price manipulation.
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