Chainlink recently launched a new product aimed at the decentralized finance (DeFi) market. This product, called the Chainlink DeFi Yield Index, uses a decentralized Oracle network to aggregate interest rates across the entire decentralized financial ecosystem.
Collaboration with Space and Time
To create this new index, Chainlink partnered with the Space and Time data platform, which utilizes zero-knowledge technology. Space and Time is a well-known data warehouse that recently secured $20 million in venture capital funding. The collaboration between these two companies enabled the creation of an index that brings a new level of accuracy and robustness.
Utilizing Blockchain for Real-Time Data
The DeFi Yield Index uses a blockchain indexer and Space and Time’s database to deliver real-time data on blockchain activities. This ensures that the data is accurate, reliable, and representative of the market’s actual state.
Benefits for Financial Institutions and DeFi Protocols
Chainlink believes that this new decentralized product will be a major benefit for various participants in the financial market, including capital market institutions, DeFi protocols, and the broader user community. The index will help them better manage risks, allocate capital more efficiently, and find opportunities for yield generation.
Core Assets and Future of the Index
Initially, the index will focus on the largest and most liquid assets in the decentralized finance market, such as USD Coin, Tether, wrapped Bitcoin, and wrapped Ethereum. Chainlink will manage the index, while Space and Time will handle the computational aspect to ensure fairness and transparency.
Part of the Broader Chainlink Ecosystem
The DeFi Yield Index is part of Chainlink’s broader product offering, which also includes Chainlink Price Feeds, Data Streams, Cross-Chain Interoperability Protocol, and Proof of Reserve. This new product contributes to the ongoing development of decentralized finance.
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