Chainlink and CF Benchmarks Launch First Market-Scale Interest Rate Product for Web3

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2022-09-28

The “CF Bitcoin Interest Rate Curve – in association with Chainlink” provides a reliable and transparent base rate that helps web3 market participants better understand digital asset valuations and manage risk

NEW YORK, September 28, 2022 /PRNewswire/ — Chain link, the industry-standard Web3 services platform, today announced the launch of the first market-wide interest rate product for the Web3 economy – the “CF Bitcoin Interest Rate Curve – in association with Chainlink” (CF BIRC). Launched at SmartCon 2022 in partnership with the leading cryptocurrency index provider, CF landmarksCF BIRC is a repeatable, market-representative, and manipulation-resistant base rate that will help remove uncertainty around crypto asset valuations while enabling increased capital efficiency and more predictable lending and borrowing in digital markets.

Chainlink and CF Benchmarks launch the first market-wide interest rate product for the Web3 economy.

As DeFi adoption increases and the Web3 economy continues to grow, with the combined market capitalization of digital assets reach $1,000,000, the infrastructure supporting the smart contract economy must keep pace with growing demand. Responding to this demand, the Bitcoin CF interest rate curve serves as a pole star to help guide Web3 capital and provides a standard market gauge of current and forecast Bitcoin interest rates. Comes in chain as Chainlink Data Feedit helps financial institutions participate in digital asset markets and establishes a stronger foundation on which digital asset derivatives markets can grow.

“Chainlink Data Feeds has helped make DeFi one of the most valuable markets in the world, and we are proud to partner with CF Benchmarks to help it reach greater maturity with the introduction of our rates product. of industry-wide interest,” said Sergei Nazarov, co-founder of Chainlink. “With this reliably delivered on-chain data via the Chainlink Network, all market participants will be able to engage in the Web3 economy with greater certainty and in exciting new ways.”

Just like the Secured Overnight Funding Rate (SOFR)which is a measure of the overnight cost of borrowing money, CF BIRC is a foundational financial infrastructure designed to help propel Web3 towards its next wave of product innovation and adoption. As a market-wide base rate for Bitcoin debt markets, CF BIRC enables participants, from OTC desktop managers and derivatives traders to native DeFi users and Web3 builders, to assess rates interest they receive and to hedge against interest rate risk. Some of the specific benefits include:

  • Transparency—Lenders and borrowers have the market benchmark and can use it as a base rate when making market decisions.
  • Consistency—Standardized curve methodology and daily rates introduce more consistency and predictability to the ebbs and flows of digital asset markets.
  • Clarity—Market participants can better quantify the risks of using certain protocols and products based on current and forecasted benchmark interest rates.

““CF Bitcoin Yield Curve – in association with Chainlink” is a first-of-its-kind offering and a major milestone for the crypto industry as a whole. We are excited to partner with Chainlink, the industry standard for industry for secure on-chain data delivery, to provide a reliable, open-source data stream backed by a transparent methodology and on-chain inputs anyone can verify,” said Sui Chung, CEO of CF Benchmarks. “This base rate will help unlock innovation in lending and borrowing platforms, asset pricing models, exchange markets and other financial primitives.”

To ensure that the curve reflects the Bitcoin lending market as a whole, CF BIRC incorporates a wide range of data sources, including OTC lending bureaus, DeFi lending pools, and perpetual futures markets. Backed by the combination of Chainlink’s industry-standard infrastructure for delivering high-quality on-chain data and CF Benchmark’s years of experience in producing reliable benchmark data, CF BIRC is a public good for Bitcoin and DeFi marketplaces on which entirely new financial products and services can be built.

The CF Bitcoin Yield Curve is built to the same security and tamper-resistant standards as other Chainlink data feeds, which currently help secure tens of billions of dollars of value in the contract economy. smart. To learn more and see how anyone in the market can use the CF BIRC, please visit https://blog.chain.link/cf-bitcoin-interest-rate-curve-cf-birc/.

About Chainlink

Chainlink is the industry-standard web3 services platform that has enabled trillions of dollars in transaction volume in DeFi, insurance, gaming, NFT, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation on any blockchain and provides global enterprises with a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain link or by reading the developer documentation at docs.chain.link. To discuss an integration, contact an expert.

About CF benchmarks
CF Benchmarks is the leading provider of cryptocurrency benchmarks, authorized and regulated by the UK FCA under the EU BMR. Comprised of market data from six constituent exchanges, its benchmarks are provided through public methodologies and transparent governance, for monitoring, evaluating and settling risks in crypto financial services and products. -change. CF Benchmarks indices were used to settle 500 billion dollars of cryptocurrency derivative contracts listed for trading by CME Group and Kraken Futures.

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Stephen V. Lee