The Kyber Protocol team announced on June 12 that its automatic liquidity provision service KyberSwap has been enhanced with Chainlink decentralized data oracles to retrieve asset prices. The integration with Chainlink will make the on-chain data, tamper free and manipulation resistant, providing a safe and reliable feed for crypto-assets prices, which is verifiable in real time. The Kyber Protocol will use Chainlink data, alongside its own feed. This is a significant development before the arrival of Kyber Katalyst upgrade, which is likely be launched, by the end of this month. It also signals that close collaboration between Decentralized Protocols (DeFi) protocols is rising, in light of the recent popularity and considerable price rise of DeFi protocol tokens.
.@KyberNetwork‘s DEX @KyberSwap is now using Chainlink Price Reference Data to update asset prices in their UI. This provides KyberSwap users with more reliable price feeds for calculating slippage rates and further safeguards against price manipulation. https://t.co/x2ybTiZsVs— Chainlink – Official Channel (@chainlink) June 12, 2020
Chainlink Integration With Kyber Protocol – What Has Changed?
The KyberSwap users were in the past, asked to verify asset prices from multiple sources, since the service exclusively relied on Kyber Protocol feeds, which whilst being largely accurate, was still prone to errors and faulty data. This is set to change with the arrival of Chainlink feeds, which will enhance accuracy and competitiveness, while determining slippage rates. It also enhances the security of the Kyber Protocol network, by safeguarding against malicious activities. Now, during token swapping, reference prices for an asset are shown from both default Kyber Protocol and Chainlink feeds.
“KyberSwap is glad to work with a reputable project like Chainlink and its decentralized oracle network to provide reliable price feeds for our non-custodial token swap platform and improve the overall trader experience.” — Sunny Jain, Head of Product, KyberSwap
“We’re excited to integrate Chainlink Price Reference Data with KyberSwap to bring more security and reliability to the price feeds their traders rely on for calculating slippage.” — Johann Eid, Product Manager on Chainlink
About Kyber Katalyst
The Kyber Katalyst is the next major upgrade for Kyber Protocol, which will likely go live by the end of this quarter(Q2 2020). It has already been deployed on the testnet. It will enable decentralized governance through KyberDAO – short for Decentralized Autonomous Organization and allow KNC holders to earn rewards by staking and participating in the protocol governance.