Biconomy integrates Chainlink to enable gas payments in different ERC-20 tokens
Biconomy, a cross-chain transaction infrastructure for decentralized applications, announced today that it has integrated Chainlink in order to calculate execution fees and rebalance its relayer infrastructure on the Polygon and Ethereum mainnets.
It will use Chainlink Price Feeds to ensure users receive fair market rates when paying for transactions in a cryptocurrency that differs from the native asset of the blockchain it is operating on.
Biconomy enables blockchain developers to provide a simplified onboarding and transaction experience for users of Web 3.0 and blockchain projects. It does this through powerful APIs that removes many of the complexities that are inherent to Web 3.0 applications.
Recently, Biconomy launched a module called Forward that allows end-users to pay DApp gas fees in supported ERC-20 tokens and stablecoins rather than the underlying blockchain cryptocurrency of the blockchain they are working on (i.e. ETH or MATIC). At the backend, this requires the users’ tokens to be converted to the native currency of the blockchain/DApp in order to complete a transaction.
The on-chain process to completing a Chainlink-powered transaction begins with the client retrieving the current gas price from the servers. The ERC20 Forwarder then receives which token the user wants to pay gas in and the price for that token is requested from the oracle aggregator, which references Chainlink. Subsequently, the ERC20 Forwarder calculates correspondingly how many tokens the user should pay to cover their gas and then charges the user. Fees are then calculated and paid for in the converted ETH.
Biconomy + Chainlink
The integration with Chainlink ensures that Biconomy is able to calculate the gas fees of each transaction using a precise exchange rate, maintaining a fair and reliable payment infrastructure. This is extremely important when transactions are completed in various currencies. Thus, users can pay for gas in the token of their choice while being assured they are paying the right fees. DApps can enable this new feature to improve the user experience and offer flexible gas payment options.
“As we continue working to simplify Web 3.0, Chainlink will act as a critical component in the architecture we need to simplify payments processes. Using Forward, users can now save their ETH holdings instead of wasting it on gas.”
– Aniket Jindal, Co-Founder of Biconomy
This Chainlink Price Feed integration marks Biconomy’s first foray into blockchain-agnostic oracle technology. In the future, Biconomy plans on integrating numerous other ERC-20 token price feeds across different blockchain networks, this will better meet the demands of developers.