Alchemy Pay is integrating Chainlink data feeds to give its users the ability to buy cryptocurrency on decentralized exchanges (DEXs) as well as get loans on decentralized finance (DeFi) lending platforms, according to a press release on Wednesday (Sept. 22).
The move gives customers a way to buy and borrow directly from digital wallets using ACH, Alchemy Pay’s ERC-20 utility token. By integrating the price feeds from Chainlink, users can be sure they’re getting fair market exchange rates when buying assets direct from their wallets on DEXs — including Uniswap, Sushiswa and ForTube — using ACH. The price feeds will also help users when collateralizing DeFi loans with ACH.
“It is crucial to the success of our payment gateway solution that the value of ACH is accurately shared throughout the ecosystem,” said Alchemy Pay CEO John Tan. “The accuracy of Chainlink Price Feeds is underpinned by the robust technology Chainlink has deployed to protect against downtime and manipulation.”
Asset prices aren’t natively available on the blockchain, necessitating another tool to capture that information off-chain and deliver it on-chain for users involved with transactions across different cryptocurrencies.
Read more: DeFi Propels Crypto Toward Problem Solving
The Silicon Valley startup first integrated Chainlink last year, and it’s now become a central player in Alchemy Pay’s payment gateway system.
“Our hybrid crypto-fiat system enables both crypto and fiat for everyday digital payments — large or small — in a single system,” said Tan. “This requires an accurately represented ACH token moment by moment. We can depend on Chainlink for that.”
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The benefits that come with Chainlink include data sourced from several aggregators for a median price weighted by volume that deletes any outliers or anything deemed suspicious. The feeds are secure and decentralized at the data source and benefit from an economy of scale.
Chainlink is the industry standard for developing, accessing and selling oracle services necessary to drive hybrid smart contracts across any blockchain. The network connects to any external API and secures billions of dollars across leading industries, including gaming and insurance.