Chainlink advance’s partnership with Synthetix to DeFi
Chainlink has a way to integrate price Feeds on the Ethereum block Chain, which is safe, trustworthy and decentralized. On Wednesday, the Oracle has integrated technology in the synthetic system platform, Synthetix, in order to enable their smart contracts.
Synthetix is one of the largest dApps on Ethereum. It is designed to host synthetic On-a-Chain-systems, or “Synths”, ERC20-Token, which track the value of investments such as stocks, and indexes in the real world. Until recently, still unnoticed, was Synthetix compared since then, with a decentralized Version of the successful derivatives exchange BitMEX and Australia was the greatest of the ICO (under its previous name Havven).
But up to the Integration with Chainlink, the platform was based on centralized Oraclel (Essentially automated price Feeds), with occasionally disastrous results: In the past June, the so-called front running Bots took advantage of the Feed, by reading the next Update and a transaction is pasted before delivery, and a risk-generated free billion dollars.
Cain Warwick, the founder of Synthetix, describes that it is for the Startup was a Problem, to write safe and accurate Off-Chain data to the Blockchain, in order to provide censorship resistance, together with an End-to-End security for decentralised Finance (DeFi).
The opportunity to use financial products, without trusting a Central party, is the purpose of DeFi. The Integration of Chainlink ensures that a distributed group of actors will have an incentive to provide accurate price information.
To trust so instead of a Team, rely on the user, acting on the Synthetix Exchange, on incentives for a distributed pricing. Chainlink guarantees the security of smart contracts that rely on data feeds by the price data are not from a single party, but by a Pool of independent, through economic incentives-based nodes are points based.
The first wave of assets from the new technology, benefit, foreign exchange and raw materials, and it is the Synthetix-users to allow these pairs to trade: AUD/USD, EU/USD, CHF/USD, GBP/USD, JPY/USD, XAU/USD and XAG/USD
The decentralization of the maintenance of the data feeds is one of the next leaps for DeFi, and we are thrilled to provide a market-leading distributed application such as Synthetix this degree of decentralization
Chainlink-co-founder Sergey Nazarov said in a statement.
Synthetix that it would like to work together with Chainlink, in order to integrate in the future other synthetic Assets, including crypto and indices, currencies. In addition, the company hopes to give its Community the possibility of new Asset price feed request, and so the platform continues to decentralize.
Featured Image: Wit Olszweski | Shutterstock
