Sypool is Integrating Chainlink Price Feeds on Solana to Optimize Fund Management Services
We are thrilled to announce that Sypool, a synthetic asset management protocol on Solana, is integrating Chainlink Price Feeds to access high-quality, tamper-proof oracles for pricing on-chain indices that represent various buckets of cryptocurrencies.
Chainlink is the industry-leading decentralized oracle network, currently helping secure $75+ billion dollars in value for top projects across decentralized finance (DeFi), insurance, NFTs, gaming, and other critical industries. By supplying premium data backed by robust oracle infrastructure, Chainlink Price Feeds will help ensure Sypool can provision cryptocurrency indices that consistently track global markets in real-time.
Sypool is a synthetic asset management protocol that provides professional financial services to users and gives trading teams a platform to deploy their strategies and raise funds (tokens). In the early stages, only qualified trading teams will be allowed to create pools.
Several pools with different strategies will be provided to users, such as:
- Index-trading SAP — tracks an index typically made up of selected tokens.
- Trader-based SAP — a pool of assets selected and traded by fund managers.
- Quantitative trading SAP — uses a large number of different technical indicators to find current market trends and make directional investments based on those trends.
- Structured yield fund — tracks the performance of other SAPs, but returns are varied by risk.
For synthetic asset management protocols such as Sypool, it’s critical that our fund managers are able to access real-time data with wide market coverage in order to price indices and make timely, precise adjustments to asset positions. This ultimately helps ensure our pools increase their yield and reduce unnecessary losses, given they are more in tune with global market prices.
As we look to expand Sypool’s offerings to second-layer trading such as options and futures, as well as a collateral-backed stablecoin, Chainlink Price Feeds will play a hand in providing precise price data that helps manage their continual operation.
After searching through a variety of oracle solutions, we ultimately chose Chainlink Price Feeds because they provide a multitude of superior 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 from outliers and suspicious volumes. Chainlink’s data aggregation model generates more precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
- Any API — Chainlink offers a flexible framework for smart contracts to retrieve data from any API, connect with any existing system, and integrate with any current or future blockchain. This will be key in scaling Sypool over time.
- High Update Frequency — Chainlink Price Feeds running natively on Solana can perform frequent price updates at minimal costs and without dependencies on other blockchains, resulting in precise price data that consistently reflects current market conditions.
- 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 the oracle network.
“As a team of traders, we know exactly how important it is to get precise and timely price data when creating financial products. Integrating Chainlink Price Feeds makes Sypool more professional and reliable by allowing us to avoid the costs associated with inaccurate prices, ultimately leading to increased fund returns for users.” — Jackson, Co-founder of Sypool.
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.
Sypool is a synthetic asset management protocol on Solana, where investors exchange our fund shares with their tokens (i.e. BTC, ETH, SOL…). Like traditional funds, investors are offered professional financial services, while fund managers have a platform to raise money (tokens). However, our fund managers not only have traditional ways (Buy low, Sell high) to earn yield for our investors, they have more “blockchain” ways to benefit fund shareholders.
In some aspects, Sypool is more than a blockchain fund, because our fund shares are also a kind of token. Therefore, they can do almost everything other tokens can do.