Taking pride in being one of the most trusted DeFi platforms, Kava has announced the news about its highly anticipated long-term collaboration with globally acclaimed oracle network, Chainlink. As part of the partnership between the two leading business entities, Chainlink will now work as Kava’s official oracle solution.
According to the news, Chainlink will play a significant role in empowering the core ecosystem of the Kava DeFi platform as, for the first time, secured price data statistics shall be available to all Cosmos chains. The unprecedented scalability expertise clubbed with Chainlink’s oracle network will enrich the Cosmos chains with the best quality data, which eventually will help in curating secure, trustworthy, and efficient Decentralized Financial products.
Kava shines as the developing mind behind the creation of the first cross-blockchain and multi-asset collateralized debt position offering or CDP, which allows investors to collateralize a wide range of crypto assets in exchange for a loan in the form of USDX, Kava’s native stablecoin. To gain the trust of the DeFi community, it is important for Kava to have a secured and reliable oracle solution for its USDX stablecoin. A weak oracle system can hamper the significance of the DeFi ecosystem. After exploring and analyzing a wide range of oracle networks, Kava’s search finally ended on Chainlink, which satisfies all its set standards and fulfills the requirements of the network.
The data entered on the Chainlink network comes from credentialed API’s through their external adaptors. This feature will allow only the highest-quality data to be transmitted to the Kava’s DeFi platform. A thorough scrutiny check has been conducted on all Chainlink nodes that supply data to the Kava network. The capacity to overlap high-quality node operators with Chainlink decreases the attack surface area of the oracle system relied on by Kava. Chainlink shines as the only decentralized oracle solution that boasts of a track record of servicing smart contracts live on the mainnet involving whopping amounts that have shown trust in their secure and safe data.
Sergey Nazarov, Co-founder of Chainlink stated,
We’re also excited to work with the innovative team at Kava to empower their multi-asset stablecoin USDX, by ensuring its critical functions only execute based on accurate data supplied by Chainlink’s secure and reliable oracle network.
The strategic collaboration is the first-ever Cosmos-SDK implementation of Chainlink, which implies that all oracle nodes will run and secure data directly on the Kava network. Also, as Kava’s blockchain is built using Tendermint, all Tendermint-powered blockchains working inside the Cosmos system such as Terra, Cosmos Hub, Agoric, etc., will be allowed to extract market data on cryptocurrencies, FX, and commodity prices from Chainlink’s oracle network posted on Kava. Kava is also working to create an efficient cross-chain link that will enable the use of the ERC-20 based ‘LINK token’ for payment and staking collateral for oracle services via the Kava blockchain.
Brian Kerr, CEO and co-founder of Kava Labs quoted,
Chainlink is a proven and battle-tested solution in the DeFi arena. We have the utmost confidence that we can rely on Chainlink oracles to power both Kava’s platform and other applications within the Cosmos ecosystem going forward.