By integrating the tested and incredibly secure Chainlink Price Feeds on the Ethereum mainnet, Euler Finance is adding to the list of DeFi protocols gearing up for Ethereum’s switch from proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS) consensus.
When commenting on the integration, Euler Labs CEO Michael Bentley dubbed the price data as “the lifeblood of DeFi lending protocols.”
He added that Chainlink provides “the best-in-class price data infrastructure for smart contracts”, and that the industry is well aware of its proven record in securing lending protocols.
By utilizing Chainlink’s oracle network, Euler will be able to make use of the improved reliability and security while also solving concerns involving post-merge TWAPs (time-weighted average price).
The protocol also hopes that the direct stETH, or staked ETH, deposits on Lido Finance will benefit its users by giving them access to fresh yields from borrowed funds. There are still many precautionary measures to be taken despite the lending protections available.
The Aave protocol opted to halt ETH borrowing before the merge out of concern involving high market usage and possible liquidity issues.
These concerns are understandable given the crypto market crash this summer and Three Arrows Capital’s collapse. Further issues of DeFi are brought to attention with Voyager Digital and Celsius Network’s bankruptcy troubles.
