Zunami Protocol Integrates Chainlink Automation To Help Trigger Rebasing on a Regular Schedule
We’re excited to announce that Zunami Protocol — a cross-chain stablecoin yield aggregator — has integrated Chainlink Automation live on the Ethereum mainnet. We are leveraging Chainlink Automation to securely and cost-efficiently trigger rebasing operations. As a result, the UZD stablecoin (Zunami Protocol’s native stablecoin) is pegged reliably and cost-effectively.
The Zunami Protocol has recently completed the successful launch of its native UZD stablecoin. The stablecoin is backed by LP tokens from Curve Finance stable pools wrapped in a DAO strategy, with rebalancing from the Zunami Protocol (ZLP).
ZLP is used as collateral, and due to the rebase design of the UZD token, users do not need to stake or contribute liquidity anywhere. This is because the number of ZLP tokens is constantly increasing based on funds that users have deposited into the protocol.
We decided to use Chainlink Automation to help trigger the rebasing process because it is the most reliable Web3 automation service. Normally, a rebase is a rather costly transaction in the blockchain. In order to avoid performing a rebase operation for each transaction, Zunami caches the price of ZLP, which helps save significant amounts of gas with on-chain calculations.
The rebase operation is open: Anyone can call this function. After a successful rebase, the contract will recalculate the current price of ZLP and allocate more UZD to each user’s balance.
In order to update user balances on a regular basis, Zunami uses Chainlink Automation to trigger the rebase function. Several times a day, Automation Nodes trigger the rebase function, which recalculates the current price of ZLP, updates user balances, and caches the price of ZLP.
Thus, users do not need to pay for additional calculations in the blockchain with each transaction, and user balances continue to be updated on a regular basis thanks to the integration of Chainlink Automation.
Chainlink Automation is a decentralized service purpose-built to manage tasks on behalf of smart contracts. Chainlink Automation leverages decentralized, hyper-reliable, and economically incentivized automation nodes to wake up smart contracts when they need to perform critical on-chain functions, which usually take place at regular time intervals (e.g., every day at the same time) or based on external events (e.g., when an asset hits a specific price).
Some of the notable features of Chainlink Automation include:
- Highly reliable, performant, and decentralized automation — Chainlink Automation ensures transactions are identified and confirmed quickly even during periods of heavy network congestion by leveraging Chainlink’s battle-tested transaction manager.
- Time-tested infrastructure that helps save costs — Chainlink Automation enables us to eliminate in-house automation infrastructure costs, reduce resources spent on DevOps, and increase speed and efficiency.
- Built to enable faster scaling — Chainlink Automation enables us to scale faster and avoid the challenges that come with building and maintaining the infrastructure needed to reliably automate across multiple chains.
- Unlocks new use cases — With smart contract automation, we’re able to explore new use cases and unlock capabilities that would otherwise not have been possible.
To see a log of the most recent Automation transactions, visit the UZD Cache Update page in the Chainlink Automation portal.
“With the help of Chainlink Automation, we’re able to offer our users a better dApp experience because we’re able to rebase automatically. Users see their balances update more often, and our team mitigates a single point of failure by outsourcing maintenance tasks to the hyper-reliable and decentralized Chainlink Automation Network.“ –Kirill Kozlov, Founder, Zunami Protocol
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.
Zunami is the DAO that works with stablecoins and solves the main issues of current yield-farming protocols by streamlining interaction with DeFi, making it easier and cheaper while increasing profitability by differentiating and rebalancing users’ funds.