Tron strengthens DeFi ecosystem with Chainlink oracle integration

Tron has officially chosen Chainlink as its primary oracle solution provider, transitioning away from its previous provider, WinkLink, to support a more integrated ecosystem for decentralised finance (DeFi) services.

According to an October 31 announcement from Tron’s decentralised autonomous organisation (DAO), the decision marks a significant development for Tron’s DeFi ecosystem, which will now use Chainlink Data Feeds to enhance the reliability of its pricing data.

As part of this partnership, Tron has joined the Chainlink Scale program, with Tron DAO initially covering operational costs, including gas fees for the Chainlink oracle networks.

Over time, these costs are expected to transition to decentralised application (DApp) user fees.

Thodoris Karakostas, the head of blockchain partnerships at Chainlink Labs, stated that the collaboration would enable Tron developers to build the “next-gen” DeFi applications, saying: 

By delivering highly reliable, accurate, and decentralised market data onchain, Chainlink will further empower TRON ecosystem developers to build next-gen DeFi applications and advance the decentralised internet.

Meanwhile, Tron DAO’s community spokesperson, Sam Elfarra, also expressed the team’s intent to accelerate Tron’s DeFi economy adding that the integration would help Tron DAO “focus on scaling” the ecosystem.

Popular DeFi platforms on Tron, including JustLend and JustStable—holding a combined total value locked (TVL) of over $6.5 billion—will benefit from secure and reliable pricing data once Chainlink data feeds are live.

Chainlink gains traction

Chainlink is a major player in the blockchain oracle sector, processing over $16 trillion in transactions and delivering more than 15 billion verified messages across various blockchain networks. 

Over the years, numerous DeFi protocols have incorporated Chainlink’s solution to provide data feeds that maintain network security and functionality even during high volatility or congestion. 

Recently, decentralised exchange GMX integrated Chainlink’s Data Streams as its oracle solution to enhance the performance of its GMX-Solana Perp DEX.

This integration would boost market data retrieval speeds, loading times, and improve the display of chart candles, contributing to a more efficient trading environment for users.

Another key Chainlink product, the Cross-Chain Interoperability Protocol (CCIP), has also gained a lot of traction within the crypto sector.

CCIP allows cross-blockchain messaging by providing a secure framework for validating messages across different chains, using a network of decentralised oracles.

Earlier this month, Ronin—a gaming-focused blockchain—implemented CCIP to improve its user experience and bolster the security of its cross-chain bridge.

Sky Mavis co-founder Jeff Zirlin referred to Chainlink as the “backbone of the world’s largest DeFi platforms” during the announcement.

Several other prominent chains like Ethereum, Arbitrum, Avalanche, and Base have also adopted Chainlink’s CCIP protocol.

Meanwhile, in Hong Kong, stablecoin issuer IDA Finance integrated CCIP to expand its HKDA stablecoin across multiple blockchains.

Even with Chainlink’s broad adoption across blockchain networks, its native token, LINK, hasn’t bounced back to its 2021 all-time high of $52.70.

Currently, it’s still trading over 77% below that high.

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