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Kava Teams with Chainlink to Make Defi Platforms More Stable and Secure

A decentralized finance (Defi) platform that offers multiple assets such as stablecoins, loans and other financial services dealing with cryptocurrency-Kava, announced that they have now formed a long-term relationship with Chainlink which is a decentralized oracle network. The relationship between the two was established keeping in mind the increasing trend in the use of cryptocurrency. This, however, is the first time Kava is partnering with a network making Chainlink its official/default network

A decentralized stable coin is an important part of a powerful Defi ecosystem because it provides stability that can be trusted just like traditional financial infrastructure’s fiat currency. 

Kava has built the first cross-blockchain and multi-asset collateralized debt position (CDP) product, by which users can exchange various crypto assets for a loan in the form of Kava’s stablecoin USDX. 

USDX brings stability not only to Kava’s DeFi platform but also to the entire Cosmos ecosystem by giving users reliable forms of payments, loans, and collateral. It also provides an interest that has a higher yield than that of cash or bank savings which are traditional methods.

The main idea of integrating with Chainlink was because it is a world-class oracle that will now strengthen the Kava Defi platform with price data that is secure. This is the first time that something like this will be offered to all Cosmo Chains. Both the firm’s Kava and Chainlink are stable and of top-class in their respective fields. Therefore by combining the scalability of Kava with oracles of Chainlink will lead to the provision of very high equality data to the Cosmos ecosystem. By making use of such high-quality data, secure, trustworthy and reliable Decentralized Financial Products can be achieved.

This favors USDX as in order to become the most trusted Defi coin, it needs to have a secure and reliable network that makes access to high-quality data easy. On the other hand, not having a stable network to operate the Defi would make the stable coin unstable. 

Since Kava has many high-security standards, the hunt for an oracle network that would support and satisfy them was carried out. In order to make it the most reliable Defi platform, it was understood that it was important to maintain the security of the USDX currency. 

After successfully carrying out the research for a network, it was analyzed that not only does Chainlink serve as a secure, reliable and accurate network for delivery of data but also excels in many other parameters that an oracle network offers. Not only are the Chainlink’s Price Reference Contracts decentralized, but are also shielded uniquely against various data manipulation techniques thus attacking as an attack resistor. 

Chainlink is being called as the official oracle network for various reasons. Some reasons are:

1)It provides higher quality data from Credentialed/Premium API’s 

2)It exhibits the property of being a protector to threats by providing safety and security

3)It has a successful record of previously serving as oracle network which is proven

4)It is an oracle mechanism that is decentralized highly

5)It has capabilities of execution that are unique

However, these are not the only reasons. Due to various other reasons, it is being used by Kava to develop the most secure infrastructure that will strengthen the DeFi system making Kava the most trusted hub in Cosmos. 

All cosmos, One solution- Chainlink

Kava-Chainlink integration is the first-ever SDK implementation of Chainlink. Kava’s blockchain is built using Tendermint and from now on Tendermint-based blockchains within the Cosmos ecosystem (Terra, Cosmos Hub, Agoric, Aragon, and others)will now be able to retrieve market data such as cryptocurrency, FX, and commodity prices from Chainlink’s decentralized oracle network posted on Kava because the data in the Kava blockchain will directly be secured by Chainlink run nodes. 

Kava will now act as a between the ecosystems and will also act as a cross-chain bridge to enable LINK (an ERC-20 token) to be used natively as payment and staking collateral for oracle services through it. 

Not only that but Kava will also become a bridge that can be used for multiple functions like requesting, paying, securing, and consuming within cosmos by integrating with Chainlink Price Reference Contracts which will provide high-quality data across the Cosmos ecosystem. 

All Tendermint blockchains can make requests for Chainlink data by sending a query to the Kava blockchain. The payment for the Chainlink oracle services will be done on Kava in a wrapped LINK token transferred from the existing LINK (an ERC-20 token) which will be bridged cross-chain onto the Kava platform so that it can be used to pay the Chainlink Oracles for their services and implement the upcoming capability of using LINK for staking. Chainlink nodes collectively process these data requests and send the response as an on-chain update to the price. 

Although Kava as an independent firm provides stable stablecoins, integration with Chainlink will help to keep the provision of services and resources safe, secure and more stable even during unfavorable conditions of the market. 

This integration has now made Kava a new distribution point through which decentralized stablecoins can be accessed, Defi applications can be built and external data that was previously borrowed for an investment can be done using the oracles of Chainlink within the Cosmos Ecosystem.

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Kava Teams with Chainlink to Make Defi Platforms More Stable
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Kava Teams with Chainlink to Make Defi Platforms More Stable
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A decentralized finance (Defi) platform offers multiple assets such as stablecoins, loans and other financial services dealing with cryptocurrency-Kava,
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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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