Tesseract Integrates Chainlink Price Feeds to Help Secure DeFi Yield Tracking

December 2022


We’re excited to announce that Tesseract— a provider of technology-enabled crypto yield products for institutions —has integrated Chainlink Price Feeds on Ethereum mainnet to their DeFi product. By integrating the industry-leading decentralized oracle network, Tesseract has access to high-quality, tamper-proof price feeds utilized for managing their actively managed DeFi yield product. This will provide our DeFi product management with better risk monitoring and strategy profitability tracking capabilities, with stronger assurances that price levels and liquidity can be monitored as accurately as possible.

Our initial integration involves the use of Chainlink Price Feeds of all major DeFi tokens on Ethereum. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans

Tesseract has extensive experience and a proven track record in developing and deploying profitable low-volatility DeFi strategies. Based in Finland, it is regulated by the Finnish FSA and backed by top investors in crypto and traditional finance. Tesseracts Managed DeFi yield product offers market-neutral returns on blue-chip assets by deploying them into different yield farming strategies in DeFi, including lending protocols, liquidity pools and staking nodes. Strategies are managed actively utilizing a rigorous proprietary risk framework. 

To help secure our daily monitoring accuracy, we needed access to fresh asset prices that are supplied on-chain directly in a highly reliable manner. Fair market prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.

After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features such as:

  • High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that are aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges. 
  • Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages. 
  • Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
  • Reputation System  — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.

“Reliable tracking of profits and risk levels on current positions in our strategies is essential. I’m excited that with Chainlinks on-chain price feeds we can now secure our real-time portfolio monitoring more reliably”  – Daniel Stafford, DeFi Portfolio Manager

About Chainlink

Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, 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 across any blockchain and provides global enterprises with a universal gateway to all blockchains.

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

About Tesseract

Tesseract is a Finland FSA-regulated digital asset innovator lending company headquartered in Helsinki, providing yield-generating solutions to institutional clients, such as cryptocurrency trading platforms and custodians, globally. Our plug’n’play yield platform, Earn API by Tesseract, enables partners to automatically offer their customers a full suite of crypto financial products tailored to specific risk strategies. Since our founding in 2017, we have a track record of rigorous risk management, innovation, and profitable growth. In June 2021, we raised a 25 MUSD Series A to supplement our scaling up. We are recruiting and are always excited about meeting new talent. Learn more at https://tesseractinvestment.com/.