Planet Finance Using Chainlink VRF and Price Feeds for Secure Launch of Green Planet and GAMMA token
Planet Finance is excited to announce that we integrated Chainlink Verifiable Random Function (VRF) to run a successful airdrop snapshot of GAMMA tokens. We also integrated Chainlink Price Feeds to access time-tested exchange rates needed to price assets on Green Planet — Planet Finance’s new lending and borrowing protocol.
We selected Chainlink because it’s the industry standard decentralized oracle network, offering cutting-edge oracle solutions for smart contracts needing premium off-chain data and secure off-chain computation services. Chainlink Price Feeds already help secure more than $70 billion in total value locked (TVL) for leading DeFi protocols, while Chainlink VRF is widely adopted by top NFT and gaming projects needing verifiable randomness for fair airdrops, raffles, loot boxes, and more. Both of these solutions were needed for a secure launch of Green Planet, as well as the fair distribution of GAMMA tokens.
Leveraging Chainlink VRF to Pick a Random Block Snapshot
A key piece to driving widespread adoption of Planet Finance’s DeFi ecosystem was our recent airdrop of GAMMA tokens, which were awarded to AQUA token holders with at least 1 AQUA token in their wallet during the snapshot. The snapshot was randomized and eventually ended up occuring at block number was 12092601 on October 26, 2021 at 12:29:28 AM +UTC. Users can find proof of the airdrop snapshot process on the BSC testnet here.
In order to pick an airdrop snapshot in a provably random and fair manner, we needed access to a secure random number generator (RNG) that any user could independently audit. However, RNG solutions for smart contracts require several security considerations to prevent manipulation and ensure system integrity. For instance, RNG solutions derived from blockchain data like block hashes can be exploited by miners/validators, while off-chain RNG solutions derived from off-chain APIs are opaque and don’t provide users with definitive proof about the integrity of the process.
After reviewing various solutions, we selected Chainlink VRF because it’s based on cutting-edge academic research, supported by a time-tested blockchain oracle network, and secured through the generation and on-chain verification of cryptographic proofs that prove the integrity of each random number supplied to smart contracts.
Chainlink VRF works by combining block data that is still unknown when the request is made with the oracle node’s pre-committed private key to generate both a random number and a cryptographic proof. The Planet Finance smart contract will only accept the random number input if it has a valid cryptographic proof, and the cryptographic proof can only be generated if the VRF process is tamper-proof. This provides our users with automated and verifiable assurances directly on-chain that the block snapshot was provably fair and was not tampered with by the oracle, outside entities, or the Planet Finance team.
Unlocking Green Planet Lending With Chainlink Price Feeds
In addition to airdropping GAMMA tokens, we needed an accurate source of price data on-chain to unlock lending functionality for our users. Since loans are overcollateralized, our smart contracts need to know the value of outstanding loans and collateral in order determine a loan’s collateralization at any point in time. This requires precise, up-to-date, and tamper-resistant price oracles.
After considering a wide range of price oracle solutions, we chose Chainlink Price Feeds because they offered superior features, such as:
- High-Quality Data — Data is sourced from numerous premium data aggregators like BraveNewCoin and Kaiko, leading to volume-adjusted global market prices with robust market coverage and built-in resistances to flash loan attacks.
- Reliable Nodes — Price feeds are secured by a decentralized network of independent, security-reviewed, Sybil-resistant oracle nodes run by leading blockchain DevOps teams with a proven history of hyper-reliability.
- Decentralized Infrastructure — Both the data sourcing and transmission on-chain are decentralized, removing any central point of failure.
- Blockchain Agnostic — Chainlink is blockchain agnostic and already running on BSC, making it a straightforward integration that operates at the native speed and cost of BSC.
Now, Green Planet users can use top cryptocurrencies as collateral to access loans, with stronger assurances that the issuance and liquidation mechanism is in sync with wider global markets. Not only does it help protect borrowers by creating a more robust liquidation mechanism, but it protects lenders by helping maintain solvency.
“Chainlink was our go-to solution for off-chain oracle infrastructure, providing us with secure RNG to conduct a fair airdrop and accurate price feeds to support a new lending service. These Chainlink-powered solutions were seamless to integrate while also giving our users the peace of mind that important on-chain processes are now more fair, reliable, and accurate.” — Planet Finance Team
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.
About Planet Finance
Planet Finance launched in May of 2021. It’s a financial protocol consisting of different planets, each their own app, designed to enable anyone to activate their capital and put it to work.
Created by an anonymous team, Planet Finance is a community driven project with the aim of bringing decentralized finance to the next billion people.
AQUA is the hyper-deflationary governance token sitting at the center of the protocol capturing value created by the protocol. GAMMA is the utility token driving value creation across the planets.
Planet Finance is open for everyone, but waits for no one.