Kraken will run a Chainlink (LINK) node to make its spot prices available to DeFi apps and developers, the exchange announced on Feb 1.
- Kraken is running the Chainlink node to broadcast its spot prices to any blockchain, as well as provide users with authenticate data that verifiably originates from the exchange
- The oracle can be used to provide data for derivatives contracts, lending applications, cross-border payments, stablecoins, automated asset management protocols
- The decision to run a node was carried out in part due to the risk of price manipulation in the DeFi market, which has been experiencing a surge in both use and exploitation
- Chainlink's CEO Sergey Nazarov had previously warned that flash loan attacks would increase if centralized price feeds continued to be used
- Chainlink is the market’s leading oracle provider, providing its services to numerous projects and companies, including Polkadot (DOT), ZeppelinOS, Brave New Coin
- The decentralized oracle service potential in several applications, such as DeFi, supply chains and enterprise systems, have helped propel Chainlink to the top of the DeFi market
- The integration will boost Kraken’s reputation in the market, all the more important since it became the first exchange in the US to be approved as a bank in Sep. 2020