This article was first published on Chainlink
xDai chain is an Ethereum-based stable sidechain that uses USD-backed stablecoin xDai (a representation of DAI token) as the native coin of the network, offering developers fast, inexpensive, and stable transactions.
As the most widely adopted decentralized oracle network, Chainlink is the go-to oracle solution for xDai developers, integrating natively with xDai Chain to power tamper-proof external data feeds.
In this technical article, we’ll show you how to use Chainlink Price Feeds to give your xDai Chain smart contracts access to high-quality, tamper-resistant price data that offers broad market coverage and secures your dApp against potential oracle exploits and flash loan funded attacks.
The Need for Scalable and Stable Transactions
This year has seen explosive growth in DeFi protocols, with the total value locked (TVL) in DeFi skyrocketing from $16B in January, to now over $40B. However, along with this growth comes increased volume of on-chain transactions, which has a flow-on effect for users who can experience unpredictably high gas fees and slow transaction times.
Layer-2 networks such as xDai Chain have emerged to support the growth of DeFi by providing increased scalability, higher throughput, and more stable transactions based on the xDai token. Within xDai’s token model, all gas fees for broadcasting transactions on the network are paid in xDai, creating a stable and economically predictable blockchain environment for developers to build on. Moreover, xDai Chain is a fully EVM-compatible sidechain to Ethereum, which means those familiar with using Solidity, MetaMask, and other Ethereum-specific tools and languages can easily work and interact with xDai Chain without having to learn new languages or set up new wallets to generate transactions.
However, like any other blockchain or layer-2 solution supporting smart contracts, there is a pressing need to provide smart contracts with access to high-quality and reliable external data and enable ...
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