API3 has announced a new collaboration that showcases the integration of their Oracle Stack with Ionic’s money market protocol on the Mode network. Together, this strategic collaboration promises to redefine the landscape of liquidity provisioning and utilization within DeFi by merging the competence of Ionic’s financial engineering, with the data integrity assurance provided by API3’s Oracle Stack.
Ionic – With its novel, decentralized, non-custodial money markets per-asset protocol primitive; Ionic devotes itself to user fund safety and efficiency. The protocol makes sure that with strong security, privacy, and an unprecedented failsafe system for managing decentralized funds.
This partnership further represents the shared goal to promote financial technology and broaden capabilities for safe, decentralized money markets.
Empowering Decentralized Finance with Advanced Oracles
The integration of API3’s Oracle Stack allows Ionic to utilize a variety of tools and services that enhance the functionality and appeal of its platform. The Oracle Stack provides reliable, real-time data feeds that are essential for the accurate functioning of financial protocols like Ionic, which offers dynamically adjusting interest rates based on real-time market liquidity.
This is important in order to maintain rates at a competitive level which are attractive and sticky for users, while enabling the platform to efficiently fulfill liquidity demand.
We are thrilled to announce that @ionicmoney is using the API3 Oracle Stack to power LSTs on their money market protocol on @modenetwork 🟡
Ionic is a decentralized, non-custodial money market protocol that leverages comprehensive security monitoring & failsafe systems to ensure… pic.twitter.com/0gxZUAbnP6
— API3 (@API3DAO) June 21, 2024
Finally, the availability of a variety of assets from Loan Repayment Tokens (LRTs), to Loan Security Tokens (LSTs) and mainstream cryptocurrency tokens makes Ionic unique in its functional design. This is supplemented by a unique revenue-sharing program that shares part of the protocol’s profits with the users and aligns interests between the platform and its community.
Ionic also provides financial innovation and what it terms “one-click looping,” a way to make the process of taking leveraged positions more accessible to the average user. This new feature, together with the premium data stream of API3’s Oracles enables more user-friendly and efficient trading strategies.