Ripple announced that it had integrated Chainlink to provide users with real-time RLUSD pricing data, enhancing the stablecoin’s utility and access on DeFi. DeFi developers will also be able to integrate RLUSD support into their applications for several use cases, such as lending and trading.
Ripple’s press release disclosed that RLUSD stablecoin users would also extensively use Chainlink’s decentralized data feeds to monitor smart contracts. RLUSD users can connect their smart contract applications to any API through Chainlink’s ‘request and response’ model, facilitating interoperability between on-chain and off-chain systems.
Chainlink will provide RLUSD with the essential infrastructure and ecosystem to power the movement of secure data and tokenized real-world assets. With Chainlink, RLUSD will tap into the $867 trillion tokenized real-world asset industry through exchanges like Uphold, Bullish, Keyrock, Bitso, and Coinmena. Chainlink’s infrastructure has reportedly enabled over $18 trillion in transaction value so far.
Ripple’s RLUSD uses Chainlink to provide fair market asset prices
Ripple chose Chainlink Price Feeds after reviewing several Oracle solutions because it provided opportunities for RLUSD-supporting DeFi applications to access fresh asset prices. The data will be supplied directly on-chain via a reliable tamper-proof system.
According to Ripple, the fair market asset prices will reflect a volume-weighted average from off-chain and on-chain trading environments. The decentralized Oracle network infrastructure will fetch, aggregate, and deliver financial market data onto the Ethereum blockchain.
Ripple claimed that Chainlink Price Feeds sourced high-quality data from premium data aggregators. The data aggregated from hundreds of exchanges is weighted by volume and cleaned of ‘wash trading.’ According to Ripple, Chainlink’s data was, therefore, inherently resistant to inaccuracies and manipulation of any single or set of exchanges.
“As RLUSD scales across DeFi ecosystems, reliable and transparent pricing is essential to maintaining stability and building trust in its utility within decentralized markets.”
-Jack McDonald, SVP, Stablecoin at Ripple
McDonald said Ripple was bringing trusted data on-chain to further strengthen Ripple’s stablecoin utility across institutional and DApps by leveraging the Chainlink standard. Eid echoed McDonald’s sentiments, saying that having access to critical on-chain data would accelerate the adoption process for the RLUSD stablecoin.
Chainlink provides secure node operators in a decentralized network
Chainlink Price Feeds node operators were secured by independent, security-reviewed, and ‘Sybil-resistant’ oracle nodes run by blockchain DevOps teams, traditional enterprises, and data providers. Ripple said the Chainlink nodes remained reliable even during infrastructure outages or high gas prices.
The Chainlink Price Feeds were also decentralized at the data source, Oracle node, and Oracle network levels. They generated robust protections against downtime and manipulation by the Oracle network or data provider. Chainlink provided a strong reputation framework and set of on-chain monitoring tools that allowed users to independently verify node operators’ historical and real-time performance.
Ripple reduced RLUSD’s on-chain, counterparty, credit, and liquidity risks by using Chainlink’s ‘Proof of Reserve’ to verify the protection of cross-chain tokenized assets against over-minting. Enabling automated risk management unlocked the programmatic utility for the RLUSD stablecoin, which was launched only last month. The token, issued on the Ethereum blockchain and the XRP Ledger (XRPL), has a market cap of $72.3 million, according to Coingecko’s data .
Ripple believes Chainlink will play a crucial role in ensuring that RLUD’s off-chain data is credibly neutral for all users. Ripple believes combining multiple layers of decentralization and cryptoeconomic incentives will ensure high accountability. Chainlink’s decentralized infrastructure could help prevent ‘black swan events’ like the recent NYSE glitch. Listed prices of several securities dropped by up to 99% due to the failure of NYSE’s centralized infrastructure.
Chainlink’s viable and future-proof approach will use the CCIP to solve the interoperability problem. Ripple highlighted that Chainlink can also retrieve data from off-chain sources and deliver it on-chain promptly and securely. The decentralized blockchain oracle network is expanding its presence in the MENA region, creating opportunities for more RLUSD adoption.
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