Hedera Integrates Chainlink Data Feeds and Proof of Reserve for Enhanced DeFi Applications

Hedera has announced the integration of Chainlink Data Feeds and Chainlink Proof of Reserve on its network. This development is part of Chainlink’s SmartData suite of asset servicing data products. The integration aims to provide developers on the Hedera network with seamless access to tamper-proof data feeds, essential for building secure decentralized finance (DeFi) and tokenized real-world asset (RWA) applications.

The HBAR Foundation has joined Chainlink Scale to enhance the access of Hedera developers to Chainlink’s high-quality oracle services. Chainlink is recognized as a standard for decentralized data, securing leading DeFi protocols responsible for significant smart contract value. It has a proven track record of delivering reliable data to blockchains and is widely adopted by applications requiring off-chain data and computation services.

Chainlink’s Role in Providing Reliable Data

For developers on the Hedera network, accessing off-chain data feeds directly on-chain in a reliable manner is crucial. Fair market asset prices should reflect a volume-weighted average from all trading environments, both on-chain and off-chain. To achieve this, developers require decentralized oracle network (DON) infrastructure to fetch, aggregate, and deliver financial market data onto the Hedera network.

Chainlink Data Feeds offer critical features, including direct access to Chainlink’s decentralized oracle network. This includes price feed contracts for a wide range of assets and the ability to connect to off-chain data sources via Chainlink’s oracle infrastructure. Developers can follow the documentation to learn how to use Chainlink Oracles on Hedera.

Enhancing Transparency with Proof of Reserve

Chainlink Proof of Reserve provides real-time reserve verifications for tokenized assets, enhancing transparency. It can fetch data directly from custodians off-chain and publish it on the Hedera network. This enables DeFi applications to perform on-chain verification checks around collateralization.

Elaine Song, VP of Strategy at The HBAR Foundation, stated, “We’re excited to deepen our integration with the Chainlink standard by adopting Chainlink Data Feeds and Proof of Reserve on Hedera. By making the Chainlink standard available to our developer ecosystem, we can enable increased access to high-quality, tamper-proof data backed by decentralized infrastructure, which is mission-critical for building secure DeFi applications and scalable tokenized assets.”

For more information, the full announcement can be read here.

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