Celsius Network, a crypto lending firm has teamed up with Chainlink to use its Oracle live data feeds to decentralize the process of estimation of interest rates on the platform. Chainlink has created a name for itself because of its Oracle real-world data feeds mostly used for smart contracts.
.@CelsiusNetwork, an industry leader with $600MM+ in assets under management, will be relying on Chainlink's decentralized price oracles for their core offering's interest rate calculation. Providing more decentralization and transparency for their users.
— Chainlink – Official Channel (@chainlink) March 30, 2020
The partnership would see Chainlink put a portion of it's Bitcoin and Ether holding under Celsius management, while Celsius network would make use of Chainlink's pricing data for both on-chain and off-chain and put it into one price feed.
Celsius network has currently over $600 million worth of crypto assets under its management and offers above-market interest rates to its users. While up until now Defi applications were the primary users of the Chainlink oracle data are given its robust nature of pricing solution that it offers.
Chainlink's Oracle Data Service a big hit in the decentralized space
Celsius is not the only prominent firm which has joined on the oracle data bandwagon, many prominent defi projects have seen the advantages of using real-world data to robust and decentralize the data. Sergey Nazarov, CEO of Chainlink noted,
“We’re allowing [Celsius] to make data inputs decentralized and what this can do is it can create a certain amount of guarantees we can show on-chain. Here's the data that you were supposed to compute, here's the number you would have computed if your computations were working correctly and then here's the payment output you sent me.”
The recent crash in the crypto market on March 12 had quite a daunting impact on lending platforms as well. Many of those had to liquidate their collateral to solidify those loans as well.