DeFi, short for decentralized finance, represents a set of blockchain-based applications built to replace the financial functions provided by financial institutions like banks, such as consumer loans and interest on customer deposits. DeFi projects use blocks of automatically executed code, known as smart contracts, to execute financial activities on a decentralized network, lowering overhead costs and preventing the programs from being shut down by governments or hackers.
Chainlink, for its part, aims to provide secure and accurate data to these on-chain protocols, including popular DeFi protocols like synthetic asset market Synthetix and token exchange platform Kyber Network. Agoric will now also use Chainlink oracles to provide data feeds to its smart contract development platform.
Agoric announced on Wednesday, Oct 21, that the integration of data from Chainlink’s decentralized oracle network into the smart contract development platform, will allow it to develop new products quicker and without creating custom data feeds. With Chainlink providing price and activity data, developers can use Agoric to pull together DeFi projects that could impact the fast-moving world of on-chain finance.