Decentralized blockchain technology has revolutionized finance applications. It secures data through encryption and hashing in interconnected blocks, enabling multiple users to access and share information while preventing unauthorized alterations. This decentralized ledger removes the need for third-party verification and minimizes the risk of system failures or attacks, reducing reliance on centralized entities like governments and banks. Moreover, it lowers transaction costs, automates smart contracts, and provides access to off-chain data through solutions like ChainLink. In this article, we integrate smart contracts and ChainLink to implement a lending system on the Avalanche-C chain. This system allows users to lend stablecoins against collateral, with automatic liquidation triggered when the health factor exceeds a set threshold. Notably, it offers low transaction fees (gas < 0.1), provides liquidity without selling assets, and leverages ChainLink for off-chain information, enabling timed execution of internal contracts, among other benefits.

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Financial Lending Application Based on Blockchain Technology

  • Zhe-You Liu,
  • Ting-Yu Lin,
  • Min-Teng Chen,
  • Pei-Yu Lin

摘要

Decentralized blockchain technology has revolutionized finance applications. It secures data through encryption and hashing in interconnected blocks, enabling multiple users to access and share information while preventing unauthorized alterations. This decentralized ledger removes the need for third-party verification and minimizes the risk of system failures or attacks, reducing reliance on centralized entities like governments and banks. Moreover, it lowers transaction costs, automates smart contracts, and provides access to off-chain data through solutions like ChainLink. In this article, we integrate smart contracts and ChainLink to implement a lending system on the Avalanche-C chain. This system allows users to lend stablecoins against collateral, with automatic liquidation triggered when the health factor exceeds a set threshold. Notably, it offers low transaction fees (gas < 0.1), provides liquidity without selling assets, and leverages ChainLink for off-chain information, enabling timed execution of internal contracts, among other benefits.