Chainlink integrates with Gearbox on Monad to strengthen DeFi pricing accuracy, reduce liquidation risks, and support secure scalable lending markets.
Chainlink announced a strategic integration with Gearbox Protocol to enhance decentralized finance pricing accuracy and liquidation safety. This partnership is aimed at leveraging and lending markets on Monad, which is based on the increased institutional interest in reliable oracle infrastructure. As a result, the relocation is an indication of enhanced risk management, greater openness, and extended trust in different DeFi economies.
Chainlink Oracles Reinforce Gearbox Lending Infrastructure
Chainlink is a decentralized oracle network that links blockchains and verified external sources of data in a secure manner. In the meantime, Gearbox is an abstracted, composable leverage protocol that enables lending on various DeFi platforms effectively. So, correct pricing is an important element of borrowing, liquidation levels, and strategies of capital deployment.
Chainlink Price Feeds have become the securities of Gearbox AUSD, earnAUSD, MON, and USDC markets on Monad through the integration. On December 20, 2025, Gearbox affirmed the update and focused on improved core pool operational reliability. Consequently, the pricing inputs become more robust when the market is volatile.
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In line with the Gearbox disclosures, the shielded markets are worth over 175 million in aggregate value locked in at the moment. This amount demonstrates the size of the leverage exposure based on accurate Oracle data. Subsequently, accuracy will increase directly to lower unexpected liquidation risks and systemic contagion risks.
Chainlink Price Feed is the aggregation of data provided by various high-quality sources and the verification of the prices by decentralized nodes. Also, cryptographic proofs and aggregation techniques restrict manipulation and attempts of attack. Thus, leveraged positions are better hedged against the abnormal price spikes.
According to the market data, the Chainlink LINK token is trading close to $12.51 on December 20, which represents a 4.82 percent daily gain. The co-existence of the integration and favorable infrastructure sentiment was independent. The adoption of oracles is usually perceived as the validation of protocols on a long-term basis.
Monad Expansion Highlights Liquidation Accuracy and Scale
Monad is an EVM-compatible and high-throughput blockchain that is scalable in terms of performance. Thus, it will appeal to DeFi protocols that want Ethereum compatibility without losing execution speed or efficiency. Nonetheless, the finer details of Oracle data are magnified by quicker implementation.
Liquidation mistakes continue to be a consistent issue in leveraged DeFi markets in times of swift volatility. Wrong prices may produce cascading losses and deleverage. Therefore, the oracle integration by Chainlink provides a direct solution to a serious vulnerability in the system.
Chainlink Price Feeds already have billions on-chain in lending and derivatives protocols. To this end, Gearbox has become in line with the industry standards of Oracle reliability. Such correspondence promotes compliance expectations and institutional risk frameworks.
The two teams focused on the issue of decentralization, security, and end-user confidence after the announcement in the open arena. Notably, neither of the protocols is based on centralized custodians of user data or asset control. On the contrary, decentralized architecture is still central in the way they operate.
Further, the integration facilitates the scaling of Ethereum-compatible DeFi infrastructure in the world by Monad. Stable pricing also promotes increased liquidity, efficiency in leverage, and protocols composability. This means that there can be a faster capital inflow through intertwined ecosystems.
In the future, analysts predict that other emergent EVM-compatible networks will have similar oracle integrations. The accuracy of liquidation can be a major difference between protocols as competition increases. Finally, the Chainlink and Gearbox partnership is an indication of the infrastructure-first and disciplined leverage design that DeFi is taking.
Source: https://www.livebitcoinnews.com/chainlink-integrates-with-gearbox-to-power-accurate-defi-pricing/
