Truflation Brings Inflation Index Data to Blockchain With Chainlink
17 January, 2022
3 mins read
We're excited to announce that Truflation, an API that provides daily U.S. inflation rate data, has made its custom index available on-chain through the Chainlink Network. As the leading decentralized oracle network in the blockchain industry, Chainlink serves as critical blockchain middleware for existing APIs to seamlessly and securely deliver data to on-chain applications. By leveraging Chainlink oracles, Truflation is able to offer its custom inflation index data directly on-chain for immediate use within smart contracts.
Smart contract developers looking to leverage Truflation's accurate U.S. inflation index data can find documentation here.
Developers can now use the Truflation Index's data to spearhead a wide range of smart contract use cases. For example, by building an algorithmic stablecoin that tracks the inflation rate or calculating inflation-adjusted DeFi yields. Secondary markets could even be created, offering users the ability to hedge against inflation risk.
We chose to deliver our data through Chainlink because it is a secure and future-proof oracle ecosystem quickly becoming the industry standard for data providers. Through Chainlink, Truflation can easily connect to a multitude of leading blockchains and L2 platforms and begin distributing its data, reaching the widest market possible.
Based on an expansive set of independent and transparent data sources and calculations, the Truflation Index is a crypto-native U.S. inflation index that aims to provide a more accurate and up-to-date picture of U.S. inflation. To accomplish this, the Truflation Index uses a remastered version of the Consumer Price Index (CPI), which substitutes 55.5% of the current CPI datasets with recent market prices, including rent, utilities, food, and transport. Additionally, Truflation repositions certain data subcategories and uses the chained-CPI basket weights to reflect consumer budgets and spending habits more accurately. With the goal of providing the most truthful and transparent inflation data, Truflation offers insights into the index's underlying model, data sources, and calculation methods.
After searching through a variety of oracle solutions, we chose to leverage Chainlink because it has a wide range of best-in-class features, such as:
- Credential Management — Chainlink nodes can securely manage API keys and account logins, leading to a seamless integration in which Chainlink nodes can purchase Truflation API subscriptions in the same manner that traditional users do today.
- Blockchain Agnostic — Chainlink is blockchain agnostic, meaning our data can be made available on any current or future blockchain environment.
- Widely Adopted — Chainlink is the most widely used oracle network in the blockchain industry, offering us access to a vast addressable market of potential data consumers.
- Provably Secure — Chainlink is thoroughly audited open-source software designed according to leading academic research, already proven to secure billions of dollars in value live in production.
"By making Truflation Index data accessible to smart contracts across leading blockchains, we're maximizing both the number of developers we can reach as well as our potential revenue streams. As crypto enthusiasts ourselves, Chainlink enables us to supply a novel, transparent, and decentralized source of U.S. inflation data to the larger cryptocurrency industry in a seamless manner, and we're excited to see what developers will build with this new dataset." —Stefan Rust, CEO of Truflation.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries and offers global enterprises and leading data providers a universal gateway to all blockchains.
Truflation is a daily, unbiased, data-driven, real-market inflation rate available on-chain to DeFi products and web3 applications. We deconstructed and remastered the most popular inflation index in the world, Consumer Price Index (CPI), to reflect the real market price changes better and provide more current inflation rate updates in the fast-changing and highly-inflationary economic environment.
Our mission is to provide the most objective, decentralized, and current inflation data and enable a new generation of inflation-proof blockchain products. Ultimately, we hope to help people maintain their purchasing power and take the DeFi space into the new era of an inflation-proof economy.
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