Alchemy Uses Chainlink to Facilitate Trading on Decentralized Exchanges September 22, 2021 September 22, 2021 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsSeptember 22, 2021 by Kelly Cromley

Alchemy Uses Chainlink to Facilitate Trading on Decentralized Exchanges

Alchemy Pay is now utilizing Chainlink Price Feeds to allow users to purchase cryptocurrency on decentralized exchanges (DEXs) and get loans on major DeFi lending platforms straight from wallets using Alchemy Pay’s ERC-20 utility token, ACH.

Chainlink Price Feeds ensure that customers are getting fair market exchange rates when buying assets directly through their wallets on DEXs like as Uniswap, Sushiswap, and ForTube using their ACH, as well as when collateralizing DeFi loans with ACH.

Chainlink is the industry standard for developing, acquiring, and reselling oracle services required to enable hybrid smart contracts on any blockchain. Chainlink oracle networks enable smart contracts to connect to any external API while also using safe off-chain calculations to enable feature-rich apps.

Chainlink now protects tens of billions of dollars across DeFi, insurance, gaming, and other key sectors, and provides a universal gateway to all blockchains to global businesses and top data suppliers.

“Accurately sharing the value of ACH across the ecosystem is critical to the success of our payment gateway solution,” stated Alchemy Pay CEO John Tan. “The strong technology Chainlink has implemented to guard against outages and manipulation underpins the accuracy of Chainlink Price Feeds.”

Because the price of assets is not an intrinsically accessible data stream on the blockchain, a solution is required to collect it off the blockchain (off-chain) and then provide it on-chain to be referenced when users execute transactions involving multiple cryptocurrencies. To avoid errors, asset prices should represent a volume-weighted average across all trading environments, rather than just one exchange. In contrast to a centralized entity, Chainlink decentralized oracle networks fetch and distribute prices.

Chainlink has been an important component of Alchemy Pay’s payment gateway system since its first incorporation in 2020. Retailers must pledge ACH on the network in order to utilize Alchemy Pay’s payment facilitation services.

Retailers may utilize Alchemy Pay systems to accept cryptocurrencies at their online and physical shops by collateralizing ACH, which Alchemy Pay converts to the merchant’s needed fiat money. Transactions on the system are completed in seconds and cost approximately 30% of what traditional payment methods do.

Alchemy Pay interacts with merchants through key platforms like as Shopify, Binance, and QFPay, representing over 2 million touchpoints globally. Chainlink already secures tens of billions of dollars in value across DeFi and CeFi.

Chainlink Price Feeds provide the following advantages:

High-Quality Data — Chainlink Price Feeds get data from a variety of premium data aggregators, resulting in price data collected from hundreds of exchanges, weighted by volume, and free of outliers and suspicious volumes.

Independent, security-reviewed, and Sybil-resistant oracle nodes operated by renowned blockchain engineers with a good track record of dependability, even amid high gas prices and severe network congestion, protect Chainlink Price Feeds.

Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, resulting in robust safeguards against outage and manipulation.

Chainlink Price — Scale Economy Feeds benefit from economies of scale, since increased usage enables many projects to utilize and finance pooled oracle networks to get frequently needed datasets.

This enables DeFi initiatives to get high-quality data and strong Oracle security for a fraction of the cost of conventional feeds.

“Our hybrid crypto-fiat system allows for both crypto and fiat for daily digital payments – big or little – in a single system,” Tan said. “This necessitates an ACH token that is properly represented at all times. Chainlink can help us with that.”

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.