The Nexo and Chainlink partnership, a strategic collaboration between the world’s leading instant crypto lending platform and the decentralized oracle network is aiming to close the gap between conventional and next-generation finance by propelling the DeFi movement.
Unlike in the case of a majority of crypto businesses, the year 2020 has been notably good for the Chainlink network, which appears to be growing by leaps and bounds. Earlier this month, popular cryptocurrency exchange Huobi partnered with Chainlink for improving the platform’s integrity and price accuracy.
Also, in June, the world’s largest decentralized exchange, KyberSwap adopted Chainlink oracles for reliable price notifications on its platform. On Tuesday, Nexo and Chainlink collaboration took shape. Nexo will now be integrating Chainlink into its crypto credit line system.
Through this integration, Nexo aims to offer top-notch security and efficiency to its customers by expanding crypto custody services, loan volumes, and a thorough decentralization of the over-the-counter operation.
The oracle network will also be leveraged to generate on-chain audit tracks for the platform’s lending and borrowing operations. This means that whenever the interest payment is being carried out in a currency that varies from the actual loan currency, Chainlink will provide accurate and reliable currency exchange rates, thus instilling more trust into the system. The borrowers will also be notified about the liquidation dates of their loans.
Shaping the future of DeFi
The Nexo and Chainlink collaboration is expected to bring forth a massive spike in cryptocurrency adoption rate as the integration not only adds an additional trust and transparency layer to Nexo’s $600 million worth of funds but also bolsters price reference data which holds hundreds of millions of dollars in value. It is likely to take decentralized finance to the next level by bringing two of the top industry players in one platform.