DeFi: What’s behind SCALE, Chainlink’s new growth project?

Thu 29 Sep 2022 ▪ 9:00 p.m. ▪
4
min read – by
Cédrick Aimé GUELANG OFALABEN

Chainlink Labs, the blockchain data and price feed provider, plans to have its native token staking by the end of this year. With this in mind, the company specializing in DeFi has decided to reduce the barriers to entry into the network through the “SCALE” and “Build” programs. The goal is to promote the development of the blockchain ecosystem related to oracles. These programs will facilitate access to the layer 1 and 2 ecosystem. They will also allow the removal of price barriers for the Oracle service. Among the first blockchains to join the SCALE program are Avalanche, Metis, Moonbeam, and Moonriver. The announcement was made at an event held in New York earlier this week.

Challenge : Chainlink launches a new growth program named SCALE

Chainlink Labs, the smart contract network powering the majority of DeFi, has just set up the Build and SCALE programs. Build, will incentivize all developing blockchains to sell between 3 and 5% of their native tokens. In return for this donation, they will access data from the Chainlink network without restriction. On the other hand, blockchains that are already part of the SCALE program will see the removal of tariff barriers. These liftings will cover all on-chain transactions related to smart contract oracles.

Chainlink has played a big role in the development of DeFi. Decentralized finance reached a total value locked (TVL) of 250 billion dollars in 2021. In less than a year, the TVL of DeFi has seen a significant drop. It sits at just $50 billion at the time of writing. This is another setback of the bear market that the crypto industry has been going through since the start of the year. On the other hand, Chainlink oracles are indispensable, as they help smart contracts and on-chain applications to access on-chain data securely and without the intervention of a third party.

Chainlink’s SCALE program is the result of a larger project still called ” Business 2.0 ». Its goal is simple, perfect data security. It also aims to improve the usefulness and operating packages of Chainlink’s oracle services. The first ecosystems to collaborate with the data provider are Moonriver, Avalanche, Metis and Moonbeam.

DeFi Remains High Despite Resilience

With its two programs, Chainlink wants to end the disparity. The company is also betting on the contribution that the introduction of staking and LINK rewards expected in December. The firm is aware that the DeFi industry is going through resilience amid the crypto bear extension. The feed and data provider recognizes that despite the drop in TVL following the fall in the value of the underlying assets, the use of DeFi remains at a very high level. ” Economic activity in DeFi is still at a very high level (…) It’s actually the same as before and in a way crypto might even be more attractive because the scarier the world gets, the more crypto is attractive “, confided Nazarov during an interview.

While waiting for the staking of its native token, Chainlink intends to play its role as the cornerstone of DeFi, to restore the image of the industry, which is currently losing momentum.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential Cointribune!

Cédrick Aimé GUELANG OFALABEN avatar
Cédrick Aimé GUELANG OFALABEN

Doctoral student in financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution for a better democratization of DeFi.

We would love to thank the author of this short article for this incredible material

DeFi: What’s behind SCALE, Chainlink’s new growth project?


Visit our social media accounts and other related pageshttps://metfabtech.com/related-pages/