Kava taps Chainlink to deepen trust between DeFi and financial institutions
Kava and Chainlink announced that Kava will use IBC to provide secure Chainlink data to hundreds of blockchains.
Kava, a DeFi platform based on the Cosmos SDK, is quickly growing as the most trusted DeFi platform for institutional clients around the world. Kava will take another major step toward that end by integrating with Cosmos’ recently launched Inter-Blockchain Communication Protocol (IBC). Using the IBC, Kava will then make Chainlink’s widely used and secure decentralized data feeds available to all blockchains in the Cosmos ecosystem.
The use of Chainlink data as part of the broader Kava DeFi ecosystem isn’t anything new. Kava first integrated Chainlink back in May 2020. Onboarding Chainlink Price Reference Data oracles onto the Kava blockchain has provided a valuable service to all users of its DeFi ecosystem. Financial institutions will find it increasingly beneficial to have direct on-chain access to real-time and tamper-resistant data as more institutions adopt Kava.
The Defi space has undergone a tremendous transformation over the past twelve months. Initially considered to be a niche market, decentralized applications, products, services, and protocols are now the center of attention. By evolving this landscape through the Inter-Blockchain Communication (IBC) protocol, Cosmos and Kava are set to see a substantial influx of new users, partners, and financial institutions.
Kava is built on the Cosmos SDK, allowing it to benefit from the recently announced Inter-Blockchain Communication protocol launch within the Cosmos ecosystem. Every network under the Cosmos banner can use IBC to gain the ability to communicate with one another. Doing so will unlock an unprecedented level of interoperability, liquidity, and access to decentralized finance solutions.
Brian Kerr, CEO of Kava, commented on this news by stating that “Kava has been safely secured by Chainlink since the beginning. Now with over $300M in collateral deposits and $1B in assets managed by the Kava software, it remains as secure as ever thanks to Chainlink. As the major DeFi Hub of the Cosmos ecosystem with a full Chainlink implementation, Kava will use IBC to provide secure Chainlink data to hundreds of blockchains via IBC going forward.”
Having real-time data available for all Cosmos-based blockchains participating in the IBC upgrade will catapult the Cosmos project to a new level. As Cosmos developers announced the IBC upgrade last week, Kava was among the first to confirm they will implement and make full use of this upgrade. Their approach will also bring Chainlink’s DeFi oracles to the broader Cosmos ecosystem.
With over 200 blockchains building on the Cosmos framework today, the IBC upgrade will play a significant role in the future. For Kava, it is beneficial to unlock more DeFi liquidity across these blockchains, bringing decentralized finance to more users. Today, there are billions of dollars in value across the Cosmos-based blockchains, all of which will benefit from accurate real-time data provided by Chainlink’s oracles.
As financial institutions begin to show an appreciation for decentralized finance solutions, the role of Kava will become more critical than ever. As one of the only cross-chain DeFi protocols in existence today, the integration of IBC will broaden this project’s appeal.
”We look forward to continuing to provide trusted DeFi data feeds to the Kava blockchain to meet growing market demand. Now thanks to the IBC upgrade, Kava can make Chainlink data easily available to the wider and growing Cosmos ecosystem to enable a more robust and novel set of DeFi applications,” stated Daniel Kochis, Head of Chainlink Business Development.
Kava is not just a traditional DeFi solution for minting USDX, as the developers have also brought together the HARD Protocol money market. Every service and product under the Kava banner uses Chainlink Price Feed oracles to access accurate and real-time data, bringing best-in-industry security to the data triggering Kava applications and setting a foundation for it to scale to secure much more value in the future.
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.
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