- MakerDAO’s integration of Chainlink extends on the Maker’s automated system Keeper Network.
- The automation will help stabilise the DAI infrastructure, including via updates on price and the debt ceiling.
- An proposal over the integration passed in a governance vote by Maker (MKR) holders.
MakerDAO has onboarded Chainlink’s decentralised oracle framework as it looks to enhance the stability of its DAI stablecoin.
The integration with Chainlink’s automation tool follows a governance proposal that saw Maker (MKR) holders approve the launch of the oracle system on MakerDAO’s Keeper Network, the DAI creator announced on Thursday.
MakerDAO integrates Chainlink oracle for DAI
The Keeper Network helps uphold the DAI infrastructure, offering an automated system that executes specific functions related to the Maker Protocol, including providing updates on price and debt ceiling.
The Maker Protocol will also benefit from tasks such as liquidity balancing for DAI as well as increased decentralisation due to the addition of third-party actors.
Automation via Chainlink’s oracle network is therefore critical to MakerDAO’s technology stack, with activation set to help stabilise DAI.
“The sophisticated technology and tools that quietly but constantly run in the background to ensure DAI’s stability rely upon MakerDAO’s Keeper Network. This network of automated bots perform essential tasks to maintain the Maker protocol and will be greatly expanded through the integration with Chainlink’s renowned, hyper-reliable automation platform,” Nadia Álvarez, a member of MakerDAO’s Growth Core Unit, said.
As highlighted above, integration with Chainlink followed a vote on what was a wider proposal for various changes, including dust parameters and recognised DAO delegates’ compensation package for January to 8 February, 2023.
Per an update from MakerDAO, the executive proposal passed on 9 February, 2023 at 03:23 UTC and is subject to a 48-hour delay as stipulated in MakerDAO’s governance pause delay. The security measure means the changes can now be executed as of 11 February, 2023 beginning 03:23 UTC.
Following the vote, MakerDAO will avail 181,000 DAI to the Chainlink Automation Keeper Network for the next six months, translating to 1,000 DAI per day.
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The decentralized finance (DeFi) space just got a major boost from MakerDAO, who have recently announced the integration of Chainlink––an oracle platform that powers smart contracts on blockchain networks. With this integration, MakerDAO will be able to provide DAI users with enhanced DeFi stability, automated risk management, and improved accessibility.
DAI, a stablecoin created and maintained by MakerDAO, is a digital currency which takes value from its borrowing and lending platform to automatically adjust the interest rate and maintain its price stability. By using the Chainlink oracle, MakerDAO is now able to automate several processes, including the collateral requirements of the DAI stablecoin. The oracle also provides DAI users with a more secure, real-time pricing feed to guarantee financial stability even during high volatility in the crypto markets.
“Chainlink’s secure delivery of real-world data into decentralized ecosystems is a major factor in transforming our platform into a global financial infrastructure.” said Rune Christensen, CEO of MakerDAO. “By connecting MakerDAO’s rich smart contract architecture to global data sources, we are building a faster, more trustless debt system that is more accessible to both traditional and digital asset users.”
With the integration of Chainlink’s platform, MakerDAO increasing the accessibility and usability of DAI. With real-time monitoring of the market, DAI holders now have more automated methods for risk management, giving them greater control and more assurance of their funds’ safety. Through this integration, Chainlink will also enable other DeFi protocols to use DAI as a base currency and access MakerDAO’s services.
The team at MakerDAO is also exploring additional technical and business opportunities to further enable automated DeFi. With the help of Chainlink, MakerDAO hopes to bring more transparency and trust to the DeFi space, and ultimately provide a more stable and secure platform for users.