- Integrating Chainlink Automation will allow third-party actors to perform essential and automated duties of Maker Protocol.
- It will help in further improving the decentralization of Maker Protocol as well as DAI’s core functionalities.
In a major development on Thursday, February 9, decentralized autonomous organization (DAO) MakeDAO announced that it will be onboarding Chainlink Automation as part of its Keeper Network.
The Keeper Network from MakerDAO is an automated system that facilitates specific executions linked to the Maker Protocol, such as updates for price and debt ceilings. Integrating Chainlink’s decentralized oracle network with MakerDAO’s technology stack will lead to further stabilization of the DAI ecosystem. Besides, MakerDAO will be able to add external parties for network maintenance and verification process.
These third-party actors will perform essential and automated duties of Maker Protocol such as improving the decentralization of Maker Protocol as well as DAI’s core functionalities. Speaking on the development, Nadia Álvarez from MakerDAO’s Growth Core Unit, said:
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.
Two renowned security pillars of the decentralized financial system are now working together for the first time.
We’re happy to announce that MakerDAO has onboarded @Chainlink Automation as part of its Keeper Network. pic.twitter.com/wjouZzcqpS
— Maker (@MakerDAO) February 9, 2023
MakerDAO powers the longest-standing DeFi lending protocol while enabling the original decentralized stablecoin, DAI. MakerDAO offers a completely decentralized governance mechanism with all proposals voted by the Maker community.
Via these embedded governance mechanisms, the self-sustaining and decentralized Maker Community gets the sole authority to enact changes to the Maker Protocol via on-chain voting and using the Maker governance token MKR.
Also read: Can VeChain become a privacy coin like Monero or ZCash? ZKPs are the future in billion-$-market
The Role of Chainlink Automation in MakerDAO
As part of the integration, chainlink automation will run specific tasks on the Maker Protocol smart contract system. This task will include price updates for Maker Oracles, upgrading debt ceilings for assets held as collateral, as well as liquidity balancing for the DAI Direct Deposit Module (D3M).
This development comes as Chainlink’s oracle services are becoming quite popular in the Web3 ecosystem while feeding different blockchain networks with external data from the real world. Chainlink has built wide-range partnerships with crypto firms as well as traditional companies.
Thus, by onboarding Chainlink Automation, MakerDAO will increase the number of third-party actors tasked with performing essential and automated duties of the Maker Protocol. It would improve the decentralization of the Maker Protocol as well as DAI’s core functionalities. Commenting on this integration, Johann Eid, VP of Go-To-Market at Chainlink Labs, said:
No spam, no lies, only insights. You can unsubscribe at any time.
The advancement of the technology backing stablecoins is a necessary component to unlock the future of finance. As more and more traditional financial institutions partner with MakerDAO and assess the applicability of DeFi, the required underlying infrastructure becomes increasingly complex. Integrating Chainlink with MakerDAO demonstrates the necessity for highly performant automation infrastructure and indicates a prosperous future for decentralized financial services.
Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Credit: Source link
