This article was first published on Chainlink
For their Chainlink bounty-winning submission at the 2021 ETHGlobal MarketMake Hackathon, Jasper and Tillman Degens created Whiskey MarketMaker, a DeFi platform that leverages Chainlink oracles to enable small-batch whiskey distilleries to tokenize and list maturing bottles of whiskey for investors, while also allowing distilleries to earn interest on ETH earned from sales via an Aave interest-bearing pool. In this post, Jasper and Tillman walk through how they built their prize-winning submission with Chainlink’s ETH/USD Price Feed, as well as how they overcame the challenge of accurately representing floating point numbers in Solidity smart contracts.
For the 2021 MarketMake Hackathon, we worked to create a prototype called Whiskey MarketMaker, a platform that connects whiskey enthusiasts to craft distilleries. Our family runs Stone Barn Brandyworks, a craft distillery in Portland, Oregon, and as we were learning more about the DeFi space, we realized that aging whiskey in barrels and interest-bearing accounts through a platform like Aave share a lot in common: in both cases, you deposit an asset and its value grows over time—each cask of whiskey is essentially an interest-bearing barrel. We came up with the idea of allowing investors to buy whiskey early in the maturation process, while at the same time providing immediate, accessible funds to small batch distilleries. In short, the platform swaps financial liquidity for potable liquidity.
An essential quality we wanted our prototype to have was an easy onboarding process for distilleries. To us, this meant that distilleries should focus on what they do best (making incredible whiskey) and have as little friction as possible when selling their products. Distilleries determine material, product, and bottle costs in fiat currency and need ...
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