Key Takeaways
- MakerDAO has onboarded Chainlink Automation to improve the stability and security of DAI, its original decentralized stablecoin.
- The integration of Chainlink Automation will expand MakerDAO’s Keeper Network, an automated system responsible for executing specific functions associated with the Maker Protocol.
- The integration of Chainlink Automation increases the number of third-party actors tasked with performing essential automated duties of the Maker Protocol, improving its decentralization.
- The onboarding of Chainlink Automation by MakerDAO demonstrates the importance of highly performant automation infrastructure in the DeFi space, indicating a bright future for decentralized financial services.
MakerDAO, a decentralized autonomous organization (DAO) and creator of DAI, the original decentralized stablecoin, has onboarded Chainlink Automation as part of its Keeper Network.
The Keeper Network is an automated system responsible for executing specific functions associated with the Maker Protocol, such as price and debt ceiling updates.
The addition of Chainlink’s decentralized oracle framework to MakerDAO’s technology stack will further stabilize the DAI ecosystem by adding more external parties to network verification and maintenance processes.
Chainlink Automation will run specific tasks on the Maker Protocol smart contract system, including price updates, liquidity balancing, and debt ceiling upgrades. This integration increases the number of third-party actors tasked with performing these essential automated duties of the Maker Protocol, thus improving the decentralization of the Maker Protocol and DAI’s core functionalities.
Nadia Álvarez from MakerDAO’s Growth Core Unit said that the sophisticated technology and tools ensuring DAI’s stability rely on MakerDAO’s Keeper Network. The integration with Chainlink’s automation platform will greatly expand the network of automated bots that maintain the Maker protocol.
Johann Eid, VP of Go-To-Market at Chainlink Labs, noted that the advancement of technology backing stablecoins is crucial to unlock the future of finance.
“As more traditional financial institutions partner with MakerDAO and assess the applicability of DeFi, the required underlying infrastructure becomes increasingly complex. Integrating Chainlink with MakerDAO demonstrates the need for highly performant automation infrastructure and indicates a bright future for decentralized financial services,” Johann added.
The integration of Chainlink Automation to the Maker Protocol was enacted by MKR holders and delegates through an Executive Vote. This integration will provide a highly reliable and decentralized oracle solution for the MakerDAO ecosystem, further strengthening the stability and security of DAI.
Overall, the onboarding of Chainlink Automation by MakerDAO improves the decentralization of the Maker Protocol and its core functionalities, ensuring the stability and security of DAI. The integration demonstrates the need for highly performant automation infrastructure in the DeFi space and indicates a bright future for decentralized financial services.
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