Acala announced integration with Chainlink

Acala announced on Thursday September 9, through its Twitter account, its new integration with Chainlink, to deliver its time-tested decentralized Oracle solution to the launch of Acala in Polkadot.

“One of the most important pieces of infrastructure for the Acala DeFi chain is the oracles, as the oracles provide key inputs such as asset prices and market information necessary to perform critical functions. That’s why Acala is actively integrating Chainlink Price Feeds to create a strong foundation for its DeFi ecosystem, giving developers access to the industry’s most proven decentralized Oracle solutions from launch. Through Chainlink, developers will be able to leverage decentralized pricing oracles for a wide range of asset prices that are backed by high-quality data, low-latency updates, and a robust underlying infrastructure optimized for availability and tamper resistance”, he said through an article published on the Medium platform.

According to the company, both teams have been working in the background for the past few months to ensure the security of the integration, including completing a security audit. Progress has also accelerated with the launch of Chainlink Oracle Pallet, a plug-and-play solution for connecting Chainlink Price Feeds to any blockchain built with Polkadot’s SDK, Substrate, such as Acala.

The company explained that Chainlink Oracle Pallet is a runtime module that can be easily connected to Acala, providing a straightforward approach to access Chainlink’s pricing sources. Additionally, Acala has also integrated Chainlink Price Feeds into Karura, Acala’s sister network in Kusama, where extensive stress testing has been conducted in preparation for the launch of Acala in Polkadot.

About Acala

It is a multi-chain DeFi platform in the Polkadot ecosystem that helps users bet, trade, borrow, loan, win, and put their tokens to work with minimal network fees.

As a highly scalable and EVM-compliant network optimized to power a wide diversity of DeFi applications, developers can implement innovative financial use cases that will benefit from Acala’s ability to combine the best of the EVM and Substrate worlds. Acala’s Layer 1 chain will offer a broad set of DeFi primitives to developers building on the platform, including a trustless share derivative called Liquid DOT (LDOT), a multi-collateral stablecoin backed by cross-chain assets called aUSD, and an AMM DEX called Acala Swap, where fees can be paid in any token.

“Driving Acala’s planned DeFi applications and the many DeFi products and markets launched without permission on the Acala parachain will require the best oracles in the industry. For example, DeFi applications such as loan / loan markets, futures / options contracts, and even algorithmic stablecoins need external data such as current asset prices or market information such as the consumer price index (CPI). or the total market capitalization. There are an unlimited number of external data sources that users may need, which do not exist natively on the blockchain”, he added.

Similarly, he commented that getting external data on the blockchain requires an oracle to fetch data, aggregate it, validate it, and then deliver it on the chain. However, if DeFi applications are to retain the blockchain’s assumptions of trust, then the oracles they trust must provide similar guarantees on their services to ensure end-to-end security and reliability.

Also read: Matcha announced that it is available on Avalanche

That is why Acala has chosen to integrate Chainlink to power the launch of Acala parachain, as its decentralized oracle solutions are built to the highest standards and have been shown to help secure tens of billions in value across the economy. DeFi. Some of the notable features of Chainlink Price Feeds include:

• High-quality data: Chainlink Price Feeds pulls data from numerous premium data aggregators, leading to aggregated price data from hundreds of exchanges, weighted by volume and cleaned of outliers and suspicious volumes. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API downtime, sudden failure outliers, and data manipulation attacks such as flash loans.

• Secure Node Operators: Chainlink’s pricing sources are protected by independent, security-reviewed, and Sybil-resilient Oracle nodes, run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record for reliability, even during high gas prices and extreme network congestion.

• Decentralized Network: Chainlink’s pricing sources are decentralized at the data source, Oracle node, and Oracle network tiers, creating strong protections against downtime and tampering by the data provider or from the Oracle network.

• Economies of scale: Chainlink pricing sources benefit from the effect of economies of scale, where increased adoption allows multiple projects to collectively use and fund shared Oracle networks to obtain commonly required data sets (eg, DOT / USD). This enables DeFi projects to get superior data quality and robust security from Oracle for a fraction of the total cost.

Ultimately, the company assured that Chainlink Oracle Pallet will prepare Acala developers for early success by eliminating time-to-market, reducing costs, and avoiding unnecessary risks associated with implementing their own Oracle solutions.

“The mission of the Acala Foundation is to make building DeFi applications easy and secure, which is why we are excited to be working with the experienced team at Chainlink Labs to provide Acala developers with proven pre-built Oracle solutions and assistance in creating solutions. Customizable Oracle to suit your needs. your unique needs. We encourage development teams based on Acala to reach out if they need help with their Oracle solutions”, he said.