How The BarnBridge Integration With Chainlink Will Deliver Smart Asset Exposure
Tokenized risk protocol BarnBridge (BOND) continues to innovate in the DeFi sector. Via their Twitter handle, this project has announced a new partnership to integrate with the Chainlink Keeper Network, a solution that enables smart contracts to be Upkeep by Keeper nodes, on Ethereum mainnet.
In other words, BarnBridge can overcome its smart contract limitation, and specify the conditions that will trigger it with more efficiency. Thus, the protocol can offer its users a product called “SMART Exposure”.
This will provide investors with a convenient way to obtain a fixed exposure ratio to an asset pair, according to an official post.
This exposure is managed by a novel, cost effective re-balancing mechanism. BarnBridge will leverage the Chainlink Keeper network to automate our rebalancing function in a decentralized, high-uptime, and cost-effective manner.
The SMART Exposure will aid investors to maximize their profits and time by mitigating the complexity of maintaining a “specific risk exposure” to an ERC-20 token trading pair.
According to the post, if an investor has a 75% ETH and 25% wBTC allocation on BarnBridge, the product automatically rebalances the position if there price fluctuations in the underlying assets. In doing so, the investors maintain its exposure ratio without direct intervention.
This provides investors with a convenient way to pursue a risk-adjusted strategy without the hassle of continuous and time consuming management of your token exposure.
How Does The SMART Exposure Operate on BarnBridge?
In order to leverage this product, users must set a target exposure ratio. If a trading pair deviates from the threshold, Chainlink Keppers will “initiate the rebalancing transaction”. The protocol’s team claims that Chainlink provides “strong guarantees” of the functionality of its rebalancing mechanism.
In addition, the implementation of this Chainlink-based solution will outsource traditional maintenance tasks. The protocol cites 4 specific advantages of the integration: High Uptime; low costs, the Keepers operate with gas optimizing features; decentralized execution, Chainlink’s pool of Keepers nodes its transparent and secure contract automation, and expandable computation.
The latter guarantees that all computations are performed off-chain. The data obtained with the solution is verified by Chainlink and can be leveraged by developers to enhance their dApps and build better products.
BarnBridge CTO and one of its co-founders Milad Mostavi claimed to be excited about the integration with Chainlink Keepers. Mostavi believes the protocol has taken another step into decentralizing its execution with a reliable and “battle-hardened” network. He added:
Not only will Chainlink Keepers provide strong liveness guarantees to key contract functions that directly impact user portfolios, but it will save the BarnBridge team considerable time and resources by not having to do this work manually.
At the time of writing, BOND trades at $35,43 with small profits in lower timeframes and an 18.2% profit in the daily chart. This token has been following the general market sentiment but shows better performance after exchange Binance announced its listing.