Cryptocurrency exchange, Kraken announced today that it is planning to make its spot prices data available to different decentralized finance applications (DeFi apps) by running its own Chainlink node. Kraken aims to increase data transparency with the latest move.
According to the official announcement, the digital exchange is planning to leverage Chainlink’s built-in cryptographic signing capabilities to provide users with definitive on-chain proof of that data originating directly from Kraken. The intelligence team of Kraken is working on an in-depth report to outline the risks associated with price manipulation and related issues in DeFi markets.
The new initiative will enable Kraken’s spot price-based oracle rates to be used on a wide range of DeFi apps. Kraken has joined other leading crypto exchanges to run Chainlink nodes.
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Commenting on the recent announcement, Jeremy Welch, VP of Product at Kraken, said: “Kraken prides itself on the ability to look ahead and provide products and services that match market demand in thriving cryptocurrency space. Given the growth of DeFi and the need for high-quality data feeds to keep it secure, we’re excited to make our exchange data spot prices available to DeFi developers through our own Chainlink node.”
The overall market cap of DeFi tokens has increased significantly since the start of 2021. Chainlink, Aave and Uniswap have posted strong gains in the last few weeks due to growing interest from investors. Additionally, the adoption of DeFi picked up speed as people increased the use of DeFi apps. Thus, Kraken aims to build trust in the DeFi market with its transparent pricing data.
“Our spot price-based Oracle Rates can be used to obtain real-time data feeds that power a wide range of decentralized applications, such as derivatives contracts, lending applications, cross-border payments, stablecoins, automated asset management protocols and more. The Kraken Oracle Rates are computed by aggregating transactions conducted on the Kraken market for the direct asset pair only (no parallel markets, such as stablecoin pairs, are used),” the official announcement states.