Chainlink Data Streams Enhance Flash Liquidity’s Onchain Rebalancing: The Go-To Oracle Solution

• Flash Liquidity integrates Chainlink Data Streams and Automation on Arbitrum mainnet to enhance self-balancing pools, offering sub-second price resolution and decentralized on-chain execution.
• Leveraging Chainlink’s proven infrastructure, Flash Liquidity enhances liquidity provider advantages with continuously monitored asset value ratios.

Flash Liquidity, the DEX aggregator that introduced self-balancing pools, recently announced the integration of Chainlink Data Streams and Chainlink Automation on Arbitrum mainnet. The DEX aggregator noted that it seeks to leverage DeFi’s industry-standard pull-based low-latency oracle solution, in order to perform on-chain rebalancing operations along with sub-second price resolution without needing any centralized automation stack.

The initial integration of Chainlink Data Streams into Flash Liquidity will involve ETH/USD and USDC/USD. Flash Liquidity said that they opted for Chainlink Data Streams because of its low-latency oracle solutions and due to their provision of premium data through the reliable Chainlink infrastructure. The development within the Chainlink ecosystem has been growing significantly, per the Crypto News Flash report.

This ensures exceptional performance and security, even in the face of unforeseen circumstances like exchange downtime, flash crashes, and data manipulation attempts facilitated by flash loans. Speaking on the development, Flash Liquidity founder Diego Cornacchini said:

“We chose Chainlink as our oracle solution because of its outstanding record of robust security, hyper-reliability, and high-quality data, proven in production for years. This choice reflects our dedication to providing reliable and superior services, ensuring the best experience for our users.”

Leveraging Chainlink Data Streams

Flash Liquidity’s self-balancing pools offer liquidity providers a notable advantage by remaining closed to public trading. These pools leverage Chainlink Data Streams and Automation to continuously monitor the asset value ratios within the pool. Upon detecting an imbalance, the system calculates the size and direction of the necessary rebalancing trade. It then selects the optimal external decentralized exchange as a counterparty to execute the order.

To ensure the security of our self-balancing pools, Flash Liquidity required access to high-frequency market data on demand, supported by decentralized and transparent infrastructure. Additionally, they sought credibly neutral and decentralized settlement infrastructure to furnish our users with a trading experience that is verifiably fair and secure. The reason behind integrating Chainlink Data Stream was the multitude of features that it offers.

Chainlink Data Streams offer sub-second data delivery, maintaining Web3 principles like decentralization and transparency. They also ensure frontrunning protection by sourcing data from conflict-free providers and using a commit-and-reveal model.

Leveraging Chainlink Automation, Data Streams enable decentralized on-chain execution, eliminating central points of failure during settlement and preventing adverse selection. With time-tested infrastructure, Chainlink has also facilitated over $8.5 trillion in on-chain transaction volume for leading DeFi applications, boasting robust security and reliability.

Flash Liquidity stated that as it continues to expand its self-balancing pools, it will continue to integrate additional Chainlink Data Streams to support the necessary crypto-asset price data for performing rebalancing operations and distributing rewards.

Source