KuCoin Integrates Chainlink Price Feeds for OTC Market Pricing

2021/12/14 13:00:00

We’re excited to announce that KuCoin is now using Chainlink Price Feeds to bring high-quality price reference data to our Over-the-Counter (OTC) markets. By integrating the industry-leading decentralized oracle network, we now have access to accurate, tamper-proof exchange rates between various fiat currencies and cryptocurrencies, which will help set floating rates in OTC markets. The initial integration involves the INR/USD and USDT/USD Chainlink Price Feeds, with more to come in the future to meet growing user demand.

Chainlink Price Feeds are open-source, decentralized data feeds for cryptocurrency prices, FX rates, and other financial market data sets that help secure over $80B+ in value for DeFi and CeFi markets. KuCoin will use Chainlink Price Feeds as benchmarks to help establish floating exchange rates, which users can tie buy/sell orders to or even specify that their orders be within a certain percentage of the floating exchange rate. The result is users getting stronger assurances of receiving fair-market exchange rates and heightened transparency into where the rates are derived from.

KuCoin’s OTC market, also known as the P2P fiat trade market, now supports 21 fiat, and it allows users to trade cryptocurrencies and fiat currencies directly with other users at predefined prices agreed upon by both parties. OTC trading gives users more control over pricing, settlement method, and settlement time. As our OTC platform scales to meet the growing demand and volume, we need to make sure that user trades are based on accurate and up-to-date floating exchange rates in order to reduce potential slippage, especially during market volatility.

After reviewing various data solutions, we decided to upgrade to Chainlink Price Feeds because they have wide market coverage for increased accuracy, decentralized security for more reliable and tamper-resistant updates, and transparent infrastructure for greater insights into how they work. Some of the notable features of Chainlink Price Feeds include:

· High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and suspicious volumes. Chainlink’s data aggregation model generates more precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks.

· Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed oracle nodes run by leading blockchain DevOps teams and traditional enterprises with a strong track record for reliability during market volatility.

· Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or the oracle network.

· Transparency — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.

“Fiat on-ramps are users’ first steps into the crypto world. As the People's Exchange, KuCoin aims to bring a better trading experience to users from the start of their crypto journey. Our integration of Chainlink Price Feeds will help lower the risk of slippage and increase transparency into the rates offered in our P2P Market Pricing. Given their reliability and accuracy, Chainlink Price Feeds will serve as trusted benchmarks in our P2P markets to help ensure that trades based on floating exchange rates are consistently in alignment with global markets.” said Johnny Lyu, CEO of KuCoin.

Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain.link or read the documentation at docs.chain.link. To discuss an integration, reach out to an expert.

Launched in September 2017, KuCoin is a global cryptocurrency exchange for over 600 digital assets. It currently provides Spot trading, Margin trading, P2P fiat trading, Futures trading, Staking, and Lending to its 10 million users in 207 countries and regions around the world. In 2018, KuCoin secured $20 million in Round A funding from IDG Capital and Matrix Partners. According to CoinMarketCap, KuCoin is currently the top 5 crypto exchanges. Also, Forbes named KuCoin as one of the Best Crypto Exchanges for 2021.

To find out more, visit https://www.kucoin.com.