When it comes to NFT lending, NFT oracles are one of the most important factors in the lending process. NFT oracles must show accurate prices, mitigate risk and be cost-efficient.
To date, we’ve partnered with Chainlink for our oracles due to their effective risk management and mitigation systems, which are powered by their unique algorithm.
We can safely say that their algorithm has worked well to mitigate risk, resulting in ParaX – formerly ParaSpace – to have the lowest number of liquidations compared to other NFT lending platforms.
While Chainlink’s oracle algorithm has been great at mitigating risk, it falls short on price accuracy, which is also extremely important for NFT lending.
Inaccurate price data could result in unhealthy accounts, a lower borrowing