Nexo has revealed plans to partner with popular decentralized oracle network Chainlink.
The renowned crypto lender will incorporate Chainlink decentralized price oracle to enjoy smoother lending and trading operations. According to reports, Chainlink is expected to provide much-needed decentralization to Nexo lending, OTC, and institutional operations. While also transforming Nexo into a “prime brokerage product suite”.
Chainlink decentralized oracle will provide better security on the crypto lending platform while also ensuring better custody of funds. Users will enjoy better loan schemes and a fully functional and highly effective Over The Counter (OTC) desk.
Security on Nexo
Nexo which currently holds over $600 million in users fund will enjoy better security from this partnership. Chainlink will provide security by combining Nexo’s highly efficient infrastructure with its secure price reference data oracle networks. Chainlink over time has helped secure crypto worth hundreds of millions of dollars. It is arguably currently the leading oracle provider in the crypto space.
Decentralization and global crypto adoption
Nexo and Chainlink partnership is an accurate example of how decentralization is facilitating crypto adoption all over the globe.
Speaking on the partnership, Co-founder and Managing Partner of Nexo, Antoni Trenchev pointed out that Nexo is majorly focused on connecting conventional and digital finance systems. Adding that this partnership with Chainlink is a step in the right direction.
Adding that, they both share the same goals, “both in terms of how our respective services currently align, and in terms of our shared vision for a digital, decentralized future of finance”. The entire Nexo team is excited by the partnership.
Apart from security and price data feeds, Nexo also plans to employ Chainlink oracle networks to achieve on-chain audit trails of all it’s lending and borrowing activities. Every time loan interest payment is done in a different currency, Chainlink would ensure exchange rates are fair, reliable, and transparent.
The price feeds will also provide collateral checks on borrowers, informing them on when users hit their liquidation price.
Chainlink Co-founder Sergey Nazarov disclosed that his team is thrilled by the partnership. And that they look forward to providing Nexo users with reliable on-chain interest and collateralization rates. Subsequently providing “trust and transparency” to Nexo’s large user base.
Chainlink is currently a well-known name in the decentralized oracle space. Prior to this time, its price reference oracle has been employed by Orchid, KyberSwap, Ontology, ViteLabs, Digitex among several others. Previously Nexo disclosed plans to extend its loan scheme.
