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Karura Integrates Chainlink Price Feeds for Acala’s Kusama-based DeFi Hub

Place/Date: - April 21st, 2021 at 5:02 pm UTC · 6 min read
Contact: Acala, Source: Acala

Karura Integrates Chainlink Price Feeds for Acala’s Kusama-based DeFi Hub
Photo: Acala / Medium

We are excited to announce that Karura, the DeFi parachain built for Kusama by the Acala Foundation, has integrated Chainlink Price Feeds. Chainlink’s industry-leading decentralized price oracles provide Karura smart contract developers with tamper-proof, hyper-reliable, and precise financial market data directly on-chain. Developers can use that data to quickly start building secure DeFi applications and products across numerous use cases like derivatives, lending, stablecoins, asset management, and more.

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.

Securing the Karura Ecosystem with Chainlink Oracles

By leveraging Kusama’s plug-and-play security, high-capacity processing speed, micro-gas fees, and interoperability across networks, Karura will provide a broad suite of financial applications including trustless staking derivatives products (liquid KSM), a multi-collateralized stablecoin backed by cross-chain assets (kUSD), and a decentralized exchange using the AMM liquidity model and an Ethereum mainnet bridge. These apps are built and ready to launch on Kusama as soon as parachain slot auctions are enabled and Karura wins a slot. Get testnet tokens and try the apps today at apps.acala.network.

Like with any other blockchain network or parachain, Karura requires a secure, reliable, and accurate source of external data to allow dApps to react on-chain to real world events happening off-chain, such as asset price changes. This data is not natively generated within blockchain networks and therefore requires a blockchain oracle to fetch, validate, and deliver on-chain. Importantly, the oracle mechanism must meet the same high security standards of the underlying blockchain network in order to prevent a “garbage input, garbage output” scenario from the smart contract.

We selected Chainlink because it’s the most proven and robust oracle solution in the market. Developers using Chainlink Price Feeds to build DeFi applications will receive strong assurances around security of users’ funds, as well as benefit from Chainlink’s growing network effects. Some of which include:

  • 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.

Through the standardized substrate Chainlink oracle pallet, Karura developers not only have an easy-to-integrate price oracle solution, but they get strong guarantees their application will execute exactly as written. Additionally, they can either share in the cost of existing Price Feeds or launch new ones based on an already established framework. Either way, we look forward to seeing what DeFi applications developers start building combining Karura and Chainlink.

Get testnet tokens and try the Karura and Acala apps today at apps.acala.network.

About Chainlink

Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow on Twitter.

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