On Wednesday, the decentralized oracle network platform, Chainlink, announced the launch of a market-wide interest rate product for Web3 protocols and the decentralized finance (defi) economy, called the CF Bitcoin Interest Rate Curve (CF BIRC). Chainlink revealed the new product at Smartcon 2022 in New York City, and the newly launched CF BIRC product aims to provide “a reliable and transparent base rate” for Web3 market participants.
Chainlink has made a number of announcements during the Smartcon 2022 event in New York City. For instance, on Wednesday the smart contract and oracle network project revealed a program called the Sustainable Chainlink Access for Layer 1 & 2 Enablement otherwise known as SCALE.
“SCALE is a holistic and win-win economic model for both blockchains and the Chainlink Network,” Chainlink tweeted on September 28. “As [layer one and layer two] userbases expand, fees from [decentralized applications] can eventually cover the full on-chain costs of Chainlink oracle nodes—driving long-term viability across different ecosystems,” the project’s team added.
Additionally at the Smartcon 2022 event, Chainlink further revealed the “CF Bitcoin Interest Rate Curve—in association with Chainlink.” Chainlink has partnered with the crypto benchmark prices and indices provider CF Benchmarks to launch the CF BIRC product.
“CF BIRC is a replicable, 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 across digital markets,” Chainlink’s announcement details.
“With this data delivered reliably onchain through the Chainlink Network, all market participants will be able to engage with the Web3 economy with greater certainty and in exciting new ways,” co-founder of Chainlink Sergey Nazarov said on Wednesday.
Moreover, Chainlink Labs is working with Coinbase Cloud as the two firms plan to provide non-fungible token (NFT) floor price feeds in real-time. This means NFT proponents and traders can get real-time floor value stats tied to NFTs like Bored Ape Yacht Club (BAYC), and the Cryptopunks.
The CF Bitcoin Interest Rate Curve product aims to bolster transparency for lenders and borrowers, consistency, and better clarity for Web3 market participants. Sui Chung, the CEO of CF Benchmarks believes CF BIRC is a “major milestone for the crypto industry as a whole.”
“This base rate will help unlock innovation across lending and borrowing platforms, asset valuation models, swap markets, and other financial primitives,” Chung added.
What do you think about the CF BIRC product launched by Chainlink and CF Benchmarks? Let us know what you think about this subject in the comments section below.
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