Now Offering Smart Contracts with Real-Time Pricing
RLUSD, this stablecoin from Ripple, just teamed up with Chainlink. Now, that means they can offer users real-time prices that are way more secure. This is huge for the DeFi scene. Developers can now use RLUSD in all sorts of apps like lending and trading platforms. It’s an expansion that should help them compete better in the DeFi market.
They say users will rely heavily on Chainlink’s decentralized data feeds for smart contracts. With Chainlink’s ‘request and response’ model, they can link smart contract apps to any API. It's a nice bridge between the on-chain and off-chain worlds.
Why Chainlink?
Chainlink appears to be the prime choice for RLUSD because it’s got the infrastructure to push secure data and tokenized real-world assets around. They’re tapping into a massive market for tokenized real-world assets, with connections to places like Uphold, Bullish, Keyrock, Bitso, and Coinmena. Chainlink’s setup is already responsible for over $18 trillion in transaction value.
Ripple claims it picked Chainlink because it gives RLUSD-supporting apps a fresh line on asset prices, delivered straight on-chain via a secure system. The prices will reflect a volume-weighted average across off-chain and on-chain trading environments. Sounds good, right?
They say Chainlink Price Feeds source their data from high-quality sources. Hundreds of exchanges contribute to this data, which apparently is scrubbed for ‘wash trading.’ So according to them, Chainlink’s data is less likely to be skewed by one source or a group of sources.
"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 stresses they're bringing trusted data on-chain to elevate RLUSD’s utility across traditional institutions and DApps by using the Chainlink standard. This should help them get RLUSD out there quicker.
What This Means for DeFi
Chainlink Price Feeds node operators are claimed to be secured by a mix of independent, security-reviewed, and ‘Sybil-resistant’ oracle nodes run by DevOps teams, traditional enterprises, and data providers. Ripple claims that these Chainlink nodes stay reliable, even when there're outages or high gas prices.
Seems like a good sign for the DeFi ecosystem. The Price Feeds are decentralized at the data source, Oracle node, and entire Oracle network level. This should protect against any downtime or manipulation happening through the Oracle network or the data provider. They even say Chainlink has a solid rep framework and monitoring tools for users to check out node operators’ past and current performance.
Ripple's also looking at using Chainlink’s ‘Proof of Reserve’ to check that the cross-chain tokenized assets are safe from over-minting. This could help unlock automated risk management for RLUSD since they just launched last month. The token, which is on both Ethereum and the XRP Ledger (XRPL), is worth $72.3 million, according to Coingecko.
This new partnership could help RLUSD avoid issues like other coins have faced, especially with things like the NYSE glitch that caused stock prices to tank.
Chainlink plans to tackle the interoperability issue with CCIP. They highlighted that Chainlink can also grab data from off-chain sources and get it on-chain in a prompt and secure manner. They’re also expanding into the MENA region, which could boost RLUSD's adoption.
A Look at Stablecoin Rivals
Now, what does this mean for other stablecoins? Well, Tether (USDT) and USD Coin (USDC) have their own problems.
Tether vs USDC
USDT has had its share of issues around auditing and transparency. The whole idea is a little shaky. RLUSD at least has Chainlink’s decentralized data feeds backing it up. USDT claims security from the blockchain it’s on, but that’s about it. RLUSD, on the other hand, has Chainlink.
USDC is known for being well-audited and compliant with regulations, but it lacks that nifty integration with a decentralized oracle network that RLUSD has. USDC's transparency comes from audits and U.S. law compliance, but RLUSD's data from Chainlink is on another level.
Summary
The point is, this integration with Chainlink gives RLUSD a leg up in security and transparency compared to USDT and USDC. They’re getting real-time, accurate, and tamper-proof data, which neither USDT nor USDC has been able to match. This partnership not only bolsters RLUSD's standing in DeFi but also ensures its stability, potentially paving the way for wider use and trust in the cryptocurrency market.
