Ripple has decided to leverage the Chainlink standard in order to facilitate trustable pricing data regarding its RLUSD stablecoin based on the Ethereum blockchain.
This integration will enable developers to make use of RLUSD when developing decentralized finance (DeFi) applications such as trading and lending by providing trustworthy and precise on-chain price data.
RLUSD is a stablecoin pegged to the US Dollar created by Ripple. It is pegged to the US Dollar and operates on the XRP Ledger (XRPL) and Ethereum blockchains. The only requirement that RLUSD needs in order to be accepted in DeFi is high-quality price data. This data is already being offered by the Price Feeds from Chainlink because they aggregate hundreds of data from different providers and exchanges.
According to the press release, Chainlink works by collecting information from an array of exchanges and discarding the less important factors like wash trading and other discrepancies, so that what is produced is a precise and volumetric weighted price that is resilient to meddling.
This information is then provided efficiently through on-chain means, making sure that there has been no tampering. Ripple used Chainlink to gain access to its decentralized Oracle network because this decentralized network provides RLUSD with dependable and secure resources under high gas prices or in the case of a network outage.
Johann Eid, Chief Business Officer at Chainlink Labs, said, “The adoption of tokenized assets such as stablecoins will continue to accelerate in the coming years, and having access to critical on-chain data will accelerate the process.”
The decentralized architecture of Chainlink ensures that there would be no downtime or direct interference on the pricing data. This interference is essential when dealing with the DeFi markets. This partnership between Chainlink and Ripple will enable RLUSD to be more widely adopted all across the DeFi world while ensuring trust and stability in stablecoin’s pricing.
Jack McDonald, SVP of Stablecoin at Ripple, mentioned in the press release, “By leveraging the Chainlink standard, we bring trusted data on-chain, further strengthening RLUSD’s utility.”
Also Read: Ripple’s CTO Shares How RLUSD Boosts XRP Ledger for Users
