Hedera’s objective is to improve its DeFi and RWA capabilities by integrating Chainlink data

To improve the capabilities of DeFi and RWA, Hedera integrates Chainlink Data Feeds and Proof of Reserve.

Hedera has disclosed an agreement to integrate with Chainlink’s decentralized data infrastructure, which will enhance its network’s capabilities. The objective of this collaboration is to improve the adoption of tokenized real-world assets (RWAs) and decentralized finance (DeFi) applications.

Developers on Hedera now have seamless access to on-chain data that is essential for the development of secure and scalable applications.

The integration of Chainlink data feeds by Hedera provides its developers with market data that is both tamper-proof and reliable. Chainlink’s decentralized oracle network (DON) ensures that digital asset pricing is accurate and resistant to manipulation by aggregating and verifying data from numerous high-quality sources. This functionality is essential for DeFi protocols, which necessitate real-time financial market data for operations such as lending, trading, and risk management.

Data sources provide numerous advantages, including decentralization, secure nodes, and high-quality data.

This integration provides Hedera developers with access to price input contracts for a variety of assets, thereby facilitating the development of a new generation of financial applications that connect traditional and digital markets.

To Hedera’s ecosystem, Chainlink Proof of Reserve serves as an additional layer of transparency and trust. This feature addresses the critical security and accountability requirements of DeFi initiatives by providing real-time reserve verifications for tokenized assets. The decentralized approach mitigates the vulnerabilities that are associated with centralized verification methods.

This feature enables applications on Hedera to incorporate transparent collateralization reviews, thereby promoting trust among investors and users.

“We can increase access to high-quality, tamper-proof data backed by decentralized infrastructure, which is mission-critical for building secure DeFi applications and scalable tokenized assets, by making the Chainlink standard available to our developer ecosystem,” stated Elaine Song, VP of Strategy at The HBAR Foundation, in a press release shared with BeInCrypto.

The Hedera ecosystem’s accelerated advancements are in alignment with the optimistic activity in its native token, HBAR. HBAR’s market value has increased by roughly 500% since November.

The announcement of the first HBAR exchange-traded fund (ETF) filing by Canary Capital on November 12 was partially responsible for the surge. In order to simplify investor access, the ETF forgoes derivatives and futures in favor of direct token holdings.

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