- The step aims to stabilize the stablecoin amid a volatile market.
- According to the Maker’s voting page, the new system goes live on Feb.11.
Cryptocurrency lending platform MakerDAO has integrated Chainlink Automation to stabilize the value of its stablecoin, DAI – a decentralized digital asset pegged to the USD. Chainlink shared the announcement in a press release on Thursday.
Chainlink Automation is set for integration into the Keeper system – and would enable price updates, liquidity balancing for the DAI Direct Deposit Module (D3M), and debt ceiling upgrades for the assets held as collateral in the Maker ecosystem.
Maker is a lending platform launched in 2017 on the Ethereum network that powers DAI, a stablecoin considered one of the oldest in the industry. The network allows users to borrow loans in DAI against their cryptocurrencies, usually overcollateralized, meaning one must deposit more assets against the borrowed amount.
The governance at Maker backed the decision on Thursday
MakerDAO, the governance arm of the protocol, decided to add Chainlink Automation through an executive vote completed on Thursday 03:23 UTC. The integration will be live on Saturday, according to the MakerDAO voting page’s announcement.
Nadia Alvarez, a representative from MakerDAO’s Growth Core Unit, said in a statement during the unveiling that: ‘‘the 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 announcement signifies the growing importance of Chainlink as a connection between traditional financial institutions and blockchain technology – enabling the integration of data from the real world into Web 3.0. Among the recently announced partnerships by the layer-2 blockchain include Deutsche Telekom and SWIFT.
On the technical charts, the announcement has not had little impact on the price of Chainlink’s native token LINK. At press time, the digital asset was changing hands for $7.13, representing a price difference of +0.14% in the past day and +0.03% in the last week.