FinTech Platform YouHodler Securing Crypto-Backed Fiat Loans Using Chainlink

Oct 11, 2021
youhodler and chainlink logos

YouHodler is pleased to announce we are now using industry-leading oracle solution Chainlink to increase the transparency and reliability of our backend pricing mechanisms. Our initial integration involves using Chainlink Price Feeds to access high-quality decentralized exchange rates on various cryptocurrency price pairs, which are then referenced in our lending product when determining users’ borrowing limits and checking the collateralization of outstanding loans. 

We decided to integrate Chainlink because it's the most time-tested decentralized price feed solution in the industry, already helping secure tens of billions of dollars for hundreds of different applications. Chainlink Price Feeds have extensive market coverage, robust and transparent infrastructure, and low latency updates to help ensure the YouHodler platform is always providing users with verifiably fair and current market rates. This integration helps YouHodler further its vision of a hybrid CeDeFi platform optimized for ease of use yet offering better transparency than traditional FinTech platforms. 

YouHodler is an innovative FinTech platform designed for beginners and expert users who are looking for a secure alternative to traditional investments in the current low-yield, high-inflation global economic environment. To that end, YouHodler offers high-yield crypto-savings accounts, crypto-backed lending with fiat, and secure fiat-to-crypto and crypto-to-crypto conversions. YouHodler supports over 30 popular cryptocurrencies and tokens as collateral for crypto-backed lending, including BTC, ETH, SUSHI, UNI, COMP, LTC, XLM, SNX, HT, REP, and more. 

We believe that using the open-source decentralized oracle technology of Chainlink will enhance the assurances users receive on our FinTech platform. Chainlink Price Feeds provide new opportunities to improve the reliability and auditability of the data we use to trigger key backend processes like issuing new loans and liquidating under-collateralized loans—all without sacrificing on data quality or security. This means YouHodler has effectively outsourced the rates users receive when taking on crypto-backed fiat loans, leading to more auditability when compared to more opaque traditional FinTech and CeFi platforms.

After reviewing various data solutions in both the traditional and blockchain world, we identified Chainlink Price Feeds to offer the most extensive set of features, including:

  • 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 accurate global market prices that are resistant to API/exchange downtime, flash crash outliers, and data manipulation attacks.
  • High Update Frequency — Chainlink Price Feeds can perform frequent price updates at minimal costs, resulting in precise price data that consistently reflects current market conditions.
  • Robust Infrastructure — Chainlink Price Feeds utilize decentralized networks of professional node operators run by leading blockchain DevOps teams and traditional enterprises with a strong track record of uptime during market volatility. 
  • Transparent Monitoring — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of price feeds.

“With Chainlink Price Feeds, we now have a more reliable and transparent backend pricing mechanism, ensuring our crypto-focused lending product consistently reflects current market prices in a manner any user can independently verify as fair,” stated Ilya Volkov, CEO of YouHodler.

“Integrating Chainlink Price Feeds marks a key step in creating a hybrid FinTech platform the leverages the advantages from both centralized and decentralized technologies to create a superior synergistic solution to the benefit of users.“ 

About Chainlink

Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.

Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.

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About YouHodler

YouHodler is a fintech platform that helps people access the benefits of the crypto economy. It allows users to get instant cash and cryptocurrency loans, exchange crypto, fiat and stablecoins quickly and easily, and earn up to 12% APR + compounding interest by depositing crypto in their account.

The platform has the highest loan to value ratio (90%), with minimum loan amounts starting at just $100 and accepts the top 30 coins as collateral with instant credit card and bank withdrawals included. YouHodler supports BTC, ETH, ADA, BNB, LTC, XLM, XRP, DASH, HT, DOGE and other popular cryptocurrencies and tokens. Users’ funds are protected with Ledger’s industry-leading and independently-certified security technology, as well as their insurance program.

The company is an EU and Swiss-based brand with two main offices in Cyprus and Switzerland. For more information please visit https://www.youhodler.com

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