It’s no secret that decentralized finance (DeFi) has become quite popular in the crypto space. This is because of the measure of tacitness, security, and control that DeFi platforms and applications offer users. So far, billions of dollars have been locked in various DeFi platforms and are used for many processes. Now, according to their statement on February 1, 2021, cryptocurrency exchange Kraken also seems to be one of the newest crypto businesses to enter DeFi. They will offer spot prices on various DeFi platforms going forward. The exchange will manage the Chainlink node.
Kraken coming to DeFi with Chainlink node
From Kraken official Twitter account, “Our spot prices are powered by our own Chainlink node for DeFi applications and developers on Ethereum. will be presented,” he said.
Kraken explained the rationale behind this decision in a blog post on its official website. According to the post, Kraken wants to leverage its size and liquidity to help run DeFi applications in a solid form. Using its own Chainlink node, Kraken not only publishes its own rates on a random blockchain; may provide users with the ability to use Kraken-sourced information using its signing capabilities.
Spot odds; It can be used to generate data feeds for derivatives contracts, lending applications, cross-border payments, stablecoins and automated asset management protocols. These rates will be created by summing up the processes performed on the Kraken market using only the direct asset pair.
Measures will be taken to prevent technical issues. Also, if the rate per minute has not been calculated, it will be updated every minute before a random update is made. Ultimately, the purpose of this new venture is; Kraken to act as a tool of truth and provide the most authentic information for DeFi users. This breakthrough of the stock market is not only in the relatively new field of DeFi; It also benefits the broader financial market, which may also want to interact with financial artifacts on-chain at the same time.
Kraken’s Deputy Leader of Artifacts, Jeremy Welch, said:
“Kraken is proud of its proficiency in providing artifacts and services that meet market demand in an evolving cryptocurrency space. Given the growth of DeFi and the need for high-quality information streams to ensure its security; We are excited to provide our spot price information on the exchange to DeFi developers via our own Chainlink node.”
Chainlink is the most widely used blockchain oracle. Kraken’s comprehensive control process and track record in securing billions of dollars in assets; stated that it is one of the factors affecting the decision to run a node.