After recently launching its token listing through Huobi Prime, Reserve, a stable global currency and a digital payment app for people and businesses in countries with high inflation, announced today that they are working with Chainlink, the industry leader in providing reliable data feeds to smart contracts.
In Reserve’s blog post they announced their plan, “to use Chainlink to help make the price feeds that the Reserve Protocol relies on more secure and to accelerate our development timeline as we work towards our full mainnet launch.”
Chainlink announced in May that they launched their Ethereum mainnet. Chainlink is working to solve the Oracle problem. ZDNet explains that “an oracle is a gateway between a blockchain and the real world. Oracles can get data off the blockchain and pass it on to smart contracts. The problem with this, of course, is that oracles introduce the need for centralization and trust in the decentralized, trust-less world of blockchains.”
Reserve continued in their post to say that, “a robust oracle network is an essential component of stablecoin design. The smart contracts that comprise stablecoin protocols are only as effective as the price data that informs their behavior, so getting this area of development right is of critical importance. The Reserve Protocol requires reliable price data not only to maintain a 1:1 peg to the US dollar by constantly monitoring the price of the Reserve stablecoin in dollar terms, but also to manage the portfolio of collateral tokens that back the value of the Reserve token (RSV).”
The partnership between Reserve and Chainlink was not completely unexpected. Reserve first mentioned using Chainlink in their whitepaper.
Nevin Freeman, CEO and co-founder of Reserve, sees the two companies as natural partners, both are building key pieces of decentralized infrastructure. “Reserve is part of the greater decentralized finance movement. The future of this movement hinges on the existence of reliable on-chain price feeds, almost no dapps will work without them.”
We’re excited about the future of stablecoins and look forward to see how this partnership unfolds and continuing to follow Reserve’s progress.