ChainLink Update and an AirDrop to Grab
Level 5 - Sonic Autist
Welcome Avatar! DeFi Team here. We’re back with a Chainlink update.
Here’s a quick overview to get everyone caught up.
Blockchain smart contracts sometimes need external sources of data. This could be weather information, stock price feeds, or the exchange rate between Ethereum and USD. Some of this data doesn’t exist on the blockchain, so there needs to be an adapter - this is a piece of software called an “oracle”.
One reason why accurate and manipulation-resistant price feeds are important is borrowing in Decentralized Finance. If you want to take out a loan against your Ethereum holdings (instead of selling and incurring a tax event), the lender needs to know to sell your Ethereum for USD to repay the loan if the price of Ethereum falls.