Cardano is welcoming its first price oracle to its decentralized finance (DeFi) ecosystem. Liqwid Labs, the DeFi project that operates on the Cardano blockchain, announced that it will integrate the Charli3 price oracle, making this real-world data service the first of its kind to reach the said Blockchain network. The announcement was made by the representative of Liqwid Labs, Yevhen Karpenko, who posted the news through his Twitter account indicating that it is the first price oracle to be implemented on the Cardano network. He also highlighted that this event reinforces the team’s commitment to providing the network with greater decentralization and offering tools for projects that may benefit from this type of service. Liqwid Labs started operating on the Cardano network in February of this year.
As for price oracles, this one is owned by the Charli3 team, who developed a price feed specially targeted for the Cardano ecosystem. Liqwid Labs integrated this service to guarantee accurate settlements in the USD/SHEN market, the reserve cryptocurrency associated with the DJED stablecoin; and hopes to enable this same feature for USD/ADA exchange rates soon.
Oracles refer to a way for a blockchain or smart contract to interact with external data. These systems, which connect data from the outside world ( off-chain ), with the world of the chain of blocks ( on-chain ), consult, verify and authenticate external price data.
The use of price oracles will allow Liqwid to handle more precise values when generating loans, updating guarantee figures and processing funds settlement with greater precision and security. The DeFi service platform also allows users to derive earnings from their deposits and other products.
Cardano continues to grow
The announcement by the Liqwid Labs team comes weeks after Cardano received its latest update, better known as Valentine, which brought new security and interoperability improvements to the mainnet. These optimizations are expected to be especially useful for the DeFi protocols that make life in this Blockchain ecosystem.
Another recent launch that took place on the network was precisely the DJED cryptocurrency, the first decentralized stablecoin that operates on the Cardano network, which began to circulate at the beginning of last February.
Among other announcements, Cardano also began operating its new sidechain compatible with the Ethereum Virtual Machine (EVM) in the public testing phase, which will allow developers to link both ecosystems and take advantage of the best properties of these networks.
