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Maker DAO Votes to Integrate Chainlink to Help Maintain DAI Stability

Tim Fries

Published: February 10, 2023 3:07 am

Last Updated: February 10, 2023 1:08 pm

After a successful vote earlier on Thursday, Maker DAO announced the integration of Chainlink’s decentralized oracle framework into its Keeper Network. The move is expected to improve the overall stability and health of Maker’s stablecoin DAI.

Maker Votes to Integrate Chainlink Oracle

On Thursday, February 9th, Chainlink and Maker DAO jointly announced the onboarding of Chanlink Automation, an oracle service, to Maker’s Keeper Network. Keeper is the automated system running debt ceiling and price updates, as well as other executions for the Maker Protocol. The integrations of Chainlink’s oracle is expected to render it more efficient and reliable.

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.

The onboarding of Chainlink will expand the capabilities of the Keeper Network and, according to the press release, help boost the decentralization of both DAI and the Maker Protocol. The integrations successfully passed a vote on the DAO this Thursday and will be available for execution on the 11th.

What is a Blockchain Oracle?

Blockchain oracles function as bridges between the blockchain and the outside world providing smart contracts with external information. They help the ecosystems they are deployed in by solving the issues arising from the fact that blockchains themselves can’t access off-chain data.

Chainlink is one of the largest decentralized oracle networks with links to digital assets and traditional firms. It is an ever-expanding system offering relatively regular updates such as the implementation of staking in the summer of 2022. Multiple major ecosystems have in recent years integrated various oracles.

For example, Coinbase listed the NEST Protocol decentralized oracle network—a competitor to Chainlink—to its platform in late July 2022. More recently, Binance announced the deployment of its own oracle service on the BNB chain.

This article originally appeared on The Tokenist