Acala’s Canary Network Karura Integrates Chainlink Price Feeds

By April 22, 2021DApps
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Acala’s Canary Network Karura Integrates Chainlink Price Feeds
canary karura

Acala’s Canary Network Karura, the DeFi parachain built for Kusama by the Acala Foundation, has integrated Chainlink price feeds to give developers building on Karura access to highly accurate financial data.

Acala, a Polkadot parachain building DeFi hub on Polkadot, announced the news in a blog post on Wednesday, April 21. According to Acala, Chainlink’s industry-leading decentralized price oracles will provide Karura smart contract developers with tamper-proof, highly reliable, and precise financial market data directly on-chain. With the help of this premium financial data, developers can quickly start building DeFi applications and products across numerous use cases like derivatives, lending, stablecoins, asset management, and more.

According to the announcement, this integration is made possible by the recent launch of a Chainlink oracle pallet, a Substrate oracle pallet that gives all projects within the Polkadot ecosystem, including parachains, substrate chains, and Kusama parachains like Karura, a standardized way to natively integrate Chainlink oracles.

Chainlink opened this oracle pallet for all Substrate, Polkadot, and Kusama chains on April 2nd of 2021. With this, both non-native parachain teams and projects building applications on top of a parachain can integrate the Chainlink oracle pallet as a runtime module using any supported smart contract languages.

Karura is a sister network of Acala, the DeFi hub of the Polkadot ecosystem, built on Kusama, the canary network of the Polkadot chain. This means the Karura will be the DeFi hub of Kusama. According to Acala:

“As a scalable, EVM-compatible network optimized to power DeFi applications, Karura allows the Acala Foundation and independent developers to push the limits of what’s possible, serving as an environment to launch bold new financial innovations.”

Like Acala Dollar (aUSD), it also offers a multi-collateralized stablecoin backed by cross-chain assets called Karura Dollar(kUSD), Liquid Dot (LDoT) like Liquid KSM, and a decentralized exchange using the AMM liquidity model. All these DeFi applications are ready to be launched on Kusama as soon as parachain slot auctions are enabled and Karura wins a slot.

These DeFi applications require an accurate source of external data to allow dApps to react on-chain to real-world events happening off-chain. Chainlink’s decentralized price feeds oracles network is an expert’s solution to this requirement. The Acala team, about the integration, said:

“Through the standardized substrate Chainlink oracle pallet, Karura developers not only have an easy-to-integrate price oracle solution, but they get strong guarantees their application will execute exactly as written. Additionally, they can either share in the cost of existing Price Feeds or launch new ones based on an already established framework. Either way, we look forward to seeing what DeFi applications developers start building combining Karura and Chainlink.”

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