Karura has announced that it will use Chainlink Price feeds for its platform, which will allow developers on the platform to use ultra-reliable information from Chainlink for smart contract creation, and much more. By allowing devs on the platform to use Chainlink’s data, a much faster development cycle is likely to result.
According to the foundation,
“This integration was made possible by the recent launch of a Chainlink oracle pallet, which gives all projects within the Polkadot ecosystem, including parachains, substrate chains, and Kusama parachains like Karura, a standardized way to natively integrate Chainlink oracles. With Chainlink Price Feeds already pre-made, resistant to manipulation (i.e., protect against flash loan attacks), and actively securing billions of dollars in value across DeFi, we believe Karura developers will greatly benefit from integrating them as their go to price oracle solution. Not only will they receive time-tested oracle security and premium data quality, but they will save considerable time and resources and avoid the risks of trying to roll their own oracle.”
Kusama is Creating a Diverse Development Environment
Karura is a sister-chain to Acala, which is the DeFi hub of the Polkadot ecosystem. It hopes to fufill the same role in the Kusama ecosystem. Kusama is similar to Polkadot, however, it is seen as a faster options, as it is a multi-chain network and operates independently, with faster governance. It also features higher risk tolerance.
The foundation thinks that,
“As a scalable, EVM-compatible network optimised to power DeFi applications, Karura allows the Acala Foundation and independent developers to push the limits of what’s possible, serving as an environment to launch bold new financial innovations.”
The use cases for the platform are diverse. It could be used in the financial services sector, and will allow the creation of trustless staking products (called liquid KSM). It also features a multi-collateralized stablecoin (kUSD), as well as a decentralized exchange that uses the AMM liquidity model, as well as an Ethereum mainnet bridge.
A Popular Sector is Growing
Karura is working in a market that has seen explosive growth over the past two years. While some DeFi platforms were developed prior to the 2017 rally, most of these platforms have grown up in a very short amount of time. Despite this, there is tremendous support for DeFi applications, and Karura will likely find both investment, and developers in the open market.
According to Karura, Chainlink was selected for the following reasons:
- Extensive Market Coverage — Each Chainlink Price Feed sources data from numerous professional data aggregators like BraveNewCoin and Kaiko, who have strong incentives to maintain high uptime and data quality. Each data provider generates volume-adjusted price feeds that reflect all trading environments, including both CEXs and DEXs, making their data precise yet robust against exchanges or data providers reporting inaccuracies, experiencing downtime, or undergoing manipulation.
- Decentralized Oracle Infrastructure — Chainlink Price Feeds are secured by decentralized oracle networks consisting of a multitude of independent, security-reviewed node operators run by leading blockchain DevOps, data providers, and enterprises. Chainlink node operators provide a high level of Sybil-resistance and have a strong historical track record of updating Price Feeds even during extreme market volatility.
- Economies of Scale — The wide adoption and shared funding of Chainlink Price Feeds throughout DeFi ecosystems across multiple chains generates an economies of scale effect, where projects can get premium data and robust oracle security for a fraction of the total cost. It also establishes confidence that these oracle networks will be around long-term, mitigating future switching costs or unexpected closures.
Karura is no doubt correct in its views on Chainlink, and it will be a welcome part of the platform’s already robust toolset. If you would like to learn more about Karura, you can visit its website, and see what the platform offers to the DeFi community.
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Source: Karura Taps Chainlink Price Feeds for Acala’s Kusama-based DeFi Platform