Karura Integrates Chainlink Price Feeds for Acala’s Kusama-based DeFi Hub
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
As the sister network of Acala — the DeFi hub of the Polkadot ecosystem — Karura aims to achieve the same goal within the Kusama ecosystem. Kusama is known as Polkadot’s faster, wilder cousin — a multi-chain network that’s built almost identical, but operates as an independent, stand-alone network with faster governance parameters and a higher risk tolerance. As a scalable, EVM-compatible network optimized 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.
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.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
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 @chainlink on Twitter.
Karura is the all-in-one DeFi hub of Kusama. Founded by the Acala Foundation, Karura is a scalable, EVM-compatible network optimized for DeFi. The platform offers a suite of financial applications including: a trustless staking derivative (liquid KSM), a multi-collateralized stablecoin backed by cross-chain assets (kUSD), and an AMM DEX — all with micro gas fees that can be paid in any token.
Acala is the decentralized financial hub and stablecoin of Polkadot that makes it fast and easy to use or build financial applications, improving trading efficiency and saving time. The platform offers a suite of financial primitives: a multi-collateralized stablecoin backed by cross-chain assets like Bitcoin, a trustless staking derivative, and a decentralized exchange to unleash liquidity and power financial innovations. Acala is the de facto open platform for finance applications to use smart contracts or built-in protocols with out-of-the-box cross-chain capabilities and robust security.