Kava has announced entering into a strategic alliance with the decentralized Oracle solution provider, Chainlink, to bolster its DeFi platform.
Chainlink is going to serve as Kava’s authorized Oracle solution partner. According to a Medium blog post, Chainlink Oracle would provide Kava DeFi platform with secure price data on the Cosmos chain. As a result, the chain will now enjoy top-notch data, ensuring that all DeFi products on Kava are secure and reliable.
Every DeFi network needs a decentralized stablecoin. The cross-blockchain and multilayer collateralized debt position (CDP) from Kava is the first of its kind. With it, users can tender a wide range of crypto assets for a USDX stablecoin loan. USDX is Kava’s official stablecoin and serves as the backbone for the entire ecosystem.
Incidentally, USDX is pivotal in providing much-needed stability to Kava’s platform as well as the whole Cosmos ecosystem. Users are able to get valid forms of payments, loans, and collateral as well as a high-interest yield with USDX.
In this backdrop, USDX had been in search of a secure and reliable Oracle network to enhance its stability and trustworthiness. So, the partnership between Kava and CHainlink is a welcome development. Announcing the news of the alliance via a tweet, Kava also disclosed that this would supersede all other Oracle networks in all ramifications.
After extensive due diligence $KAVA has selected @Chainlink as the official oracle provider powering $USDX & as the official default provider serving all #Defi projects built on #KAVA. This integration allows all @cosmos chains to use #Chainlink price data https://t.co/ReKg1cfYI3
— Kava Labs (@kava_labs) March 26, 2020
According to Kava, Chainlink’s Price Reference Contracts were decentralized and also highly resistant to manipulation attacks, thereby ensuring tested and trusted Oracle for USDX.
Chainlink, the official Oracle for Kava
In its role as the official Oracle partner for Kava, Chainlink is set to power all DeFi products on its ecosystem.
In the blog post, Kava throws more light on why it chose Chainlink’s oracle solution.
- Outstanding Data from Premium APIs- According to extensive research, Chainlink network nodes harvest data from premium APIs. This ability allows the availability of only high-quality data on Chainlink’s Oracle.
- Sybil resistant nodes – All of Chainlink’s nodes are security certified. They have undergone stringent security review processes before getting accreditation. This, in essence, solidifies Chainlink’s attack-proof resilience.
- Top-notch track record – Chainlink has a proven track record in the Oracle solution space. Moreover, its protocols have ensured serving of smart contracts on the mainnet to the tune of hundreds of millions of dollars. This further boosts its credibility.
Kava also singled out Chainlink’s highly decentralized oracle mechanism and unique execution abilities that helped it make this partnership decision.
More on the partnership
This partnership pioneers the first-ever Cosmos-SDK utilization of Chainlink. The DeFi platform, on the other hand, will create a cross-chain bridge. This will facilitate the use of Chainlink native token LINK as collateral.
Kava in the blog post disclosed that this integration would ensure off-chain data to all Kava DeFi applications remained secure. It would be crucial in leading to the development of a more trusted DeFi ecosystem within Cosmos.
Sergey Nazarov, Co-founder of Chainlink, said on the occasion, “We’re also excited to work with the innovative team at Kava to empower their multi-asset stablecoin USDX”.
Chainlink also recently partnered with Solana blockchain.