Jarvis Network successfully integrated Chainlink into the Ethereum mainnet

Author: Jarvis Network

Compiled by: ChainCatcher

We are excited to announce that Jarvis Network has successfully integrated Chainlink on the Ethereum mainnet. Jarvis utilizes Chainlink's market-leading price feed oracles in our Synthereum protocol and our proprietary dApp, Jarvis Exchange.

For the soft launch, liquidity within the protocol remains very limited, with only the Jarvis team able to provide liquidity; these restrictions will be lifted after the completion of various security audits.

Jarvis's mission is to provide a robust and liquid asset issuance layer for traditional assets within the DeFi ecosystem, primarily focusing on issuing various synthetic fiat assets. Ultimately, this will onboard millions of new users and elevate DeFi to a new level.

With Chainlink's highly secure, reliable, and scalable decentralized oracle network, users can now buy, sell, and trade synthetic assets that track the latest market prices of various forex trading pairs without experiencing slippage. The initial Chainlink price feed set used on the Synthereum mainnet includes three major fiat currencies (EUR/USD, GBP/USD, and CHF/USD), with the goal of adding more currencies.

These Price Feed oracles are supported by Chainlink's recently launched off-chain reporting protocol, a significant scalability upgrade that can reduce the on-chain gas costs of oracle updates by up to 90%. With this scalability upgrade, the Synthereum protocol will have extremely fresh financial market data reflecting current global, volume-adjusted exchange rates. Specifically, Chainlink's commodity and forex price sources update every time they deviate from the previous price by 0.3%, which is the lowest update threshold for any price oracle on Ethereum today.

In addition to supporting our existing assets, we will leverage Chainlink OCR to rapidly expand the selection of synthetic assets available on Synthereum, with a primary focus on bringing forex into DeFi. In fact, since DeFi is a borderless global financial system, users should be provided with many alternatives to the dollar hegemony. The Synthereum protocol is well-positioned to offer such alternatives with deep liquidity. Its unique design allows for the trading of synthetic assets without slippage and enables any synthetic asset to be exchanged for any ERC20 token with minimal slippage.

After successfully implementing the forex layer, Synthereum will bring more assets to Ethereum using many existing and upcoming Chainlink price feeds, such as commodities, metals, stocks, and indices.

Jarvis Network is a set of protocols on Ethereum that allows anyone to gain price exposure to any traditional or digital asset based on liquidity pools. One of the protocols is Synthereum, which enables users to mint synthetics through various mechanisms. The first version of this protocol introduced a mechanism for minting assets against counterparty risk: users deposit USDC into a liquidity pool and receive an equivalent amount of synthetic tokens in return.

Behind the scenes, these synthetic assets are over-collateralized by users' USDC and idle funds in the pool, provided by liquidity providers. An incentivized network of liquidators ensures that the assets remain over-collateralized.

For example, a user might deposit 100 USDC and receive 82.52 jEUR—a synthetic euro token pegged to its underlying real-world value (1 jEUR = 1 EUR). If the minimum collateralization ratio is 150%, the 100 USDC deposit is matched with 50 USDC provided by liquidity providers. Users and liquidity providers act as counterparties, but only the latter can be liquidated, thus charging fees by assuming all risks. The overall design allows users to seamlessly convert their minted tokens into any other synthetic asset with zero slippage.

A key feature unique to our proprietary Dex, Jarvis Exchange, is that synthetic assets can be seamlessly swapped for any ERC20 token on DEXs like Uniswap. To do this, users send their synthetic assets to the Synthereum contract, which unlocks an equivalent amount of USDC and sends it to the Uniswap pool, where it can be exchanged for any other ERC20. By leveraging the existing USDC liquidity in the DeFi ecosystem, this significantly expands the utility of synthetic assets on Synthereum. In fact, it provides each synthetic asset with the same liquidity as USDC.

However, to ensure that synthetic assets are minted at a value equal to their USDC deposits, exchanged for another synthetic asset at current market rates, and redeemed for an equivalent amount of USDC, the Synthereum protocol requires a secure source of price data for each supported asset. Since blockchain networks themselves cannot access data from external sources, especially aggregated price data, we need a "blockchain oracle" to bridge this gap.

We chose Chainlink as our preferred oracle solution because we found it to be the most secure, reliable, and time-tested oracle network on the market. It not only provides a wide range of easily integrable Price Feed oracle networks that are already live on the mainnet, but it also offers an established framework for quickly launching new networks.

All Chainlink price sources are protected by a decentralized network composed of security-reviewed and Sybil-resistant oracle node operators, ensuring continuous uptime and tamper-proofing. Each node operator sources data from multiple high-quality data aggregators, then further aggregates node responses to generate a single volume-adjusted price update conducted by the oracle network. This means that every data point referenced during the minting and exchanging of synthetic assets on Synthereum is highly accurate, available, and resistant to various forms of data manipulation (e.g., manipulation caused by flash loans).

Another important factor in choosing Chainlink as our price feed solution is its extensive scalability, particularly the ability to access high-frequency on-chain updates at a cost-effective price. As a result, Synthereum can support markets that are more sensitive to price fluctuations, such as trading between fiat currencies. This precision means that users can mint and exchange synthetic tokens with less exchange rate slippage, further protecting liquidity providers.

Chainlink Price Feed oracles will support all existing and future synthetic assets within Synthereum and the broader Jarvis Network, bringing a consistent level of oracle security and reliability to all users across the ecosystem. We plan to use Chainlink to expand our existing base of synthetic assets and support more exotic synthetic assets, such as tokens that track asset volatility, total value locked in DeFi, and more.

Jarvis Network CEO Pascal Tallarida stated: "Chainlink's price feeds play a foundational role in Jarvis Network, ensuring that all synthetic assets on Synthereum can be acquired and traded at their true market value with zero slippage." "With the Chainlink OCR upgrade, we can provide the most sophisticated markets on Ethereum to switch risk exposures between various unique assets."

Chainlink is the most widely used and secure way to support universally connected smart contracts. With Chainlink, developers can connect any blockchain to high-quality data sources from other blockchains as well as real-world data. Chainlink is managed by a global decentralized community of hundreds of thousands of people and is introducing a fairer contract model. Currently, its network secures billions of dollars in value for smart contracts across sectors such as decentralized finance (DeFi), insurance, and gaming ecosystems.