- It’s no secret that decentralized finance (DeFi) has become hugely popular in the crypto space. This is due to the amount of privacy, security, and control DeFi platforms and applications offer to users. So far, billions of dollars have been locked down on various DeFi platforms and are used for many transactions. Now, crypto exchange Kraken also looks like one of the newest crypto businesses to enter DeFi, according to their February 1, 2021 statement. They will present their spot prices on various DeFi platforms going forward. The exchange will manage the Chainlink node.
“Our spot prices will be available for DeFi apps and developers on Ethereum by running our own Chainlink node,” Kraken said on its official Twitter account.
Kraken explained the rationale behind this decision in a blog post on its official website. According to the post, Kraken wants to take advantage of its size and liquidity to help with reliable execution of DeFi applications. Kraken not only publishes its rates on any blockchain using its Chainlink node; it can give users the possibility to use data from Kraken by using their signing capabilities.
Spot rates; It can be used to create data feeds for derivative contracts, lending applications, cross-border payments, stablecoins, and automated asset management protocols. These rates will only be created by adding up transactions on the Kraken market using the direct asset pair.
Measures will be taken to prevent technical problems. Also, if the rate per minute is not calculated, it will be updated every minute before any updates are made. Ultimately, the purpose of this new venture is; Kraken acts as the right tool and provides the most authentic data for DeFi users. This move of the exchange is not only in the relatively new DeFi space; it also benefits the wider financial market that might want to interact with financial products on the chain.
Kraken Vice President of Product Jeremy Welch said:
“KRAKEN IS PROUD OF ITS SKILL TO PROVIDE PRODUCTS AND SERVICES THAT MEET THE MARKET DEMAND IN A DEVELOPING CRYPTO CURRENCY FIELD. CONSIDERING THE NEED FOR HIGH-QUALITY DATA FLOWS TO ENSURE THE GROWTH AND SECURITY OF DEFI; WE ARE EXCITING OUR SPOT PRICE DATA ON THE EXCHANGE TO DEFI DEVELOPERS THROUGH OUR OWN CHAINLINK NODE. ”
Chainlink is the most widely used blockchain oracle. Kraken’s comprehensive audit process and track record of securing billions of dollars in assets; He stated that it was one of the factors that affected the decision to run a node.