- Hedera integrates Chainlink’s Data Feeds and Proof of Reserve to improve DeFi applications and ensure trust in tokenized real-world assets.
- The HBAR Foundation joins Chainlink SCALE to reduce Oracle costs, support developers, and drive the adoption of secure financial solutions.
Today, Hedera disclosed its partnership with Chainlink to incorporate decentralized oracle services for DeFi and RWAs’ tokenization. This integration successfully combines Chainlink Data Feeds and Proof of Reserve (PoR), providing reliable and auditable services for the developers of the applications of the financial space built on the Hedera network.
Chainlink Data Feeds Bolster DeFi Applications
The inclusion of Chainlink Data Feeds guarantees Hedera developers get aggregated and authenticated off-chain market data. It is necessary to form stable and safe DeFi applications, including automatic exchanging platforms, lending and borrowing systems, and decentralized exchanges. Chainlink’s decentralized oracle networks solve the problem of data manipulation, enhance liquidity, and optimize risk management on the Hedera network.
The alliance with Chainlink also makes Hedera attractive to institutional users, who are also seen as reliable partners. The integration solves a problem of reliability in the rapidly developing DeFi markets, which has been an issue of concern in the domain for many years. To this end, Hedera said that it has built a secure data infrastructure to spur adoption among developers and financial services.
Proof of Reserve Ensures Trust in Tokenized Assets
Chainlink has implemented PoR into the Hedera network to prove and collateralize Tokenized assets. To this end, PoR allows for immediate, decentralized cross-verification of reserves, ensuring that tokenized RWAs are fully collateralized.
As previously mentioned, PoR provides better transparency to developers and users as data on reserve is collected from custodians and posted to the blockchain. This process reduces risks of undercollateralized assets while simultaneously addressing single failure points. Therefore, any organization in the process of implementing blockchain solutions to manage various assets can use the Hedera network to tokenize various assets effectively and securely. HBAR Foundation has become the newest member of the Chainlink SCALE Program
To further encourage the innovation of such tools, the HBAR Foundation has now joined the Chainlink SCALE program. Through a grant program, developers working on the Hedera network can navigate Chainlink’s decentralized oracles with reduced expenses. This is a great way to reduce the cost of creating DeFi protocols and tokenized RWA applications.
The integration impacts the volume in the markets involving Chainlink’s LINK and Hedera’s HBAR tokens. Thus, LINK has a positive upward movement, marked by a series of inspirations. While this went on, HBAR only shifted a little in price due to fluctuations in the market price. HBAR is changing hands at $0.2881 as of this writing, though it is a 1.24% drop from the previous price.
