Rysk Finance Integrates Chainlink Price Feeds to Help Secure Decentralized Options

We’re excited to announce that Rysk Finance — a DeFi protocol built to help accelerate DeFi risk maturity and real yield — has integrated Chainlink Price Feeds on Arbitrum mainnet. By integrating the industry-leading decentralized oracle network, Rysk Finance now has access to high-quality, tamper-proof price feeds needed to help price and settle options in the Dynamic Hedging Vault (DHV), Rysk Finance’s first product. This will provide our users with stronger assurances that options are priced and settled using fair-market spot prices that have been sourced in a transparent and decentralized manner.

Our initial integration involves the use of the ETH/USD Chainlink Price Feed. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.

The DHV is a hybrid AMM and RFQ options protocol, generating uncorrelated returns for its liquidity providers whilst enabling any user to buy from the vault or sell to the vault, options that have a wide range of strike prices and expiries. The DHV uses a dynamic hedging approach, pricing options to incentivize sales or purchases that bring the vault’s delta exposure closer to zero, or by trading any derivative with a trackable delta to rebalance delta.

Liquidity providers can deposit funds into the DHV to act as a decentralized market maker and earn the spread on the DHV’s operations when selling and buying options.

In order to help price and settle options, 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.

“Accurate price data is critical for options traders to reliably trade and manage their positions. Chainlink Price Feeds feature a robust architecture that helps ensure security, reliability, and accuracy in all market conditions, making it a perfect fit for Rysk Finance.” — Dan Ugolini, Co-Founder of Rysk Finance.

About Chainlink

Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with 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 Rysk Finance

Rysk Finance is spearheading on-chain market making for DeFi derivatives, while resolving long-standing industry complexity around generating higher returns per unit of risk taken for liquidity providers.

Rysk’s signature product, the Dynamic Hedging Vault (DHV) is a hybrid AMM and RFQ options protocol, generating uncorrelated returns for its liquidity providers whilst enabling anyone to trade (buy and sell) options with a wide range of strike prices and expiry dates. The DHV uses a dynamic approach in hedging risk to generate market-neutral uncorrelated returns for liquidity providers.

Learn more about Rysk Finance by visiting rysk.finance or reading the documentation at docs.rysk.finance.