Oracle

Oracles in Decentralized Lending on Rhombus

In decentralized lending protocols like Rhombus, oracles play a crucial role in delivering accurate and reliable price data for digital assets and other financial instruments.

Oracles provide real-time external information to the blockchain, enabling smart contracts to make informed decisions based on current market conditions. They are essential for determining collateral values, adjusting interest rates, and triggering liquidation events.

Rhombus Oracle Providers

Rhombus uses Orakl as Oracle provider to fetch price feeds for various assets

Orakl on Rhombus

The Orakl is a decentralized oracle solution built on the Kaia blockchain, offering real-time price data sourced from reputable institutional venues. By integrating Orakl, Rhombus ensures high-quality and reliable market feeds.

This integration gives Rhombus access to accurate and timely price data, enabling better asset valuation, dynamic interest rate adjustments, and smooth liquidations. Using reliable oracles like Orakl enhances the security and transparency of the lending process, helping users lend and borrow with confidence, knowing their assets are safe from price manipulation.

How Rhombus Utilizes Orakl

By leveraging Orakl’s real-time price feeds and decentralized services, Rhombus improves the accuracy and reliability of its operations. Here are some key ways the integration strengthens the protocol:

• Real-Time Asset Valuation: Rhombus relies on Orakl’s data to constantly update the value of assets used as collateral. This ensures borrowers’ assets are always properly valued, safeguarding both borrowers and lenders.

• LTV Calculation: Accurate loan-to-value (LTV) ratios are crucial for healthy lending. Orakl sources market data from trusted institutional venues, allowing Rhombus to calculate collateral value and maintain up-to-date LTV ratios.

• Liquidation Triggers: Rhombus automatically triggers liquidations when collateral drops below a certain threshold. Orakl’s real-time price feeds allow the protocol to act quickly and accurately, protecting lenders’ funds from under-collateralized loans.

• Interest Rate Calculations: With interest rates often tied to market dynamics, Rhombus uses Orakl’s data to adjust rates in real-time, ensuring they align with supply and demand conditions.

• Transparency and Verification: Orakl enables Rhombus users to independently verify the accuracy of price feeds. This transparency assures users that the platform operates fairly and without manipulation.

• Smart Contract Integration: Rhombus integrates Orakl Network’s oracle service directly into its smart contracts. These programmable, self-executing contracts automate many of the protocol’s key functions, such as collateral valuation and liquidation, based on Orakl’s real-time data.