HourGlass Integrates Chainlink Price Feeds to Help Secure Decentralized Convertible Bonds

We’re excited to announce that HourGlass — a marketplace for decentralized convertible bonds — has integrated Chainlink Price Feeds on Ethereum mainnet. By integrating the industry-leading decentralized oracle network, HourGlass has access to high-quality, tamper-proof price feeds needed to help price the buttonFORTH token that will be used by the FORTH DAO to issue bonds. This will provide our users with stronger assurances that issued bonds are valued according to fair-market rates.

Our initial integration involves the use of the following Chainlink Price Feeds: FORTH/USD, ETH/USD, and BTC/USD. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production.

The FORTH DAO is a leaderless organization that governs the Ampleforth protocol. To raise funds, the FORTH DAO can use the HourGlass platform to convert a portion of its AMPL governance tokens to convertible bonds.

HourGlass is a platform that enables DAOs to issue debt against their DAO governance tokens. HourGlass uses the buttonToken wrappers and the buttonTranche contracts to create convertible bonds that can be issued against any token that has a reliable price feed. These composable contracts Hourglass built on top of were created for the Buttonwood Foundation. The Buttonwood ecosystem will also feature a long-term debt market, an auction protocol, and many other DeFi instruments that also make use of the buttonTranche and buttonToken primitives.

In order to help ensure that the buttonFORTH tokens — which are the foundation for the Elastic Stack — are priced according to fair-market rates, we needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.

After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features such as :

High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.

“Chainlink has been a foundational component of the HourGlass project. We’ve made use of Chainlink tutorials, starter kits, and various trust-minimized services dating back to the Chainlink Fall 2021 Hackathon, which was where HourGlass was born. ” — HourGlass Team

About Chainlink

Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.

About HourGlass

HourGlass will be a decentralized marketplace for issuing and trading convertible bonds. DAOs will be able to use HourGlass to issue debt against their DAO token.

Source : medium