Two leading projects on the Tezos ecosystem – SmartPy and Cryptonomic – have announced their decision to use Chainlink oracle to power smart contracts.
Announced on Thursday, the real-time pricing data will allow projects on Tezos to take pricing feeds for various assets to build out products.
Chainlink’s oracle brings off-chain data to smart-contracts through a decentralized system of oracles. The company organizes and vets the data from various on-chain and off-chain sources, thus constructing a reliable market data source.
These data are crucial for building decentralized finance (DeFi) applications, which will now allow the building of such applications on Tezos blockchain.
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The integration was sponsored by a grant from the Tezos Foundation.
Chainlink has seen a massive integration of its price oracle on various Google forms, Oracle, and SWIFT. Cryptocurrency projects, including bZx, Polkadot, and Celcius Network, also use Chainlink’s price oracle.
“Most of our core team has worked in finance for multiple years, especially derivatives finance. We’ve worked on mission-critical systems that handle very high notional financial trades. So that’s why we’re really attracted to Tezos because of on-chain governance and formal verification. But one missing piece of the puzzle, there have to be external inputs in order to build successful Tezos DeFi applications,” Cointelegraph quoted Cryptonomic co-founder Vishakh.
Price oracles are in demand
Notably, the demand for such pricing feeds is also dramatically increasing as companies are focusing on their core projects rather than building proprietary price feeds.
Last week, the US crypto exchange giant Coinbase also introduced a similar price oracle to mitigate the systematic risks on DeFi platforms. The company is sourcing the real-time data from Coinbase Pro, its professional crypto trading platform.