Cardano, the decentralized blockchain platform, has taken another step towards total decentralization with the launch of its first oracle integrator. Liqwid, one of the top DeFi projects on Cardano, has integrated Charli3, which is the first decentralized oracle integrator on Cardano’s mainnet, and it went live on April 6, 2023. This integration marks a significant milestone in the advancement of Cardano’s DeFi landscape.
What is an Oracle?
An oracle is a data feed that provides real-time, reliable data from off-chain sources to on-chain smart contracts. Oracles are essential components of any decentralized ecosystem as they allow smart contracts to interact with the outside world, enabling developers to build more complex, useful applications.
Charli3 – the First Decentralized Oracle Integrator on Cardano
Charli3 is the first decentralized oracle integrator on Cardano’s mainnet. It enables projects to deliver precise, secure, and safe data to their platforms and users. This integration is similar to Chainlink for Ethereum. Charli3 provides accurate on-chain oracle feeds, including SHEN/ADA prices, with ADA/USDT integration set to follow soon. This capability is an exciting development for the Cardano ecosystem as it creates more on-chain opportunities for new projects to secure trust in the ecosystem.
Liqwid – Algorithmic Liquidity Market Protocol on Cardano
Liqwid is an algorithmic liquidity market protocol on Cardano that allows lenders and borrowers to interact with each other in a trustless, decentralized manner. The platform will employ Charli3’s oracles for computations to generate new loans, adjust collateral values, and commence liquidations for under-collateralized loans. This integration will bring more transparency, security, and efficiency to Liqwid’s lending and borrowing services, further enhancing the protocol’s reputation as the most used Cardano DeFi protocol by transaction volume.
ADA Price Struggles
Despite the recent gain of roughly 15% in the past month, ADA prices have struggled to surpass $0.40 over the last few months. Currently, ADA is trading at $0.38, as per CoinMarketCap. Cardano is the second-highest network for staked value behind Ethereum, with a staking market capitalization of around $9 billion and a staking ratio of 66%, according to StakingRewards. Despite the lower price, Cardano’s total value staked is still growing, indicating that investors and users have confidence in the project’s long-term prospects.
The integration of Charli3 on Cardano’s mainnet is a critical juncture for the entire Cardano ecosystem. This development is a significant milestone towards achieving total decentralization, further enhancing trust, security, and efficiency within the ecosystem. As more DeFi protocols integrate with Charli3, the Cardano network will continue to attract more users, investors, and developers, propelling it towards its goal of becoming the most decentralized and trusted blockchain platform.
