MakerDAO integrates Chainlink to stabilize DAI

Chainlink Automation will update the price and liquidity balance, helping to maintain stability for Maker’s $5 billion stablecoin DAI.

MakerDAO integrates Chainlink to stabilize DAI

At dawn on February 10, one of the current largest DeFi platforms MakerDAO announced its integration with Chainlink, helping to maintain stability for DAI – its flagship product, after a governance vote.

According to management results, MakerDAO can now integrate Chainlink Automation into its Keeper Network. This is a network of bots that control parameters such as price and debt ceiling to ensure that DAI always maintains a 1:1 price with USD.

Chainlink Automation becomes the latest third-party protocol to be added to the DAI stablecoin launch technology. Oracle Chainlink will be launched with features such as price updates, liquidity rebalancing and debt ceiling lifting for DAI collateral. Debt ceiling refers to the maximum amount of DAI generated based on backed collateral.

The Chainlink integration was approved by the DAO member on February 9th. This includes parameter changes with multiple vault types and compensation for accredited members in January. There are 17 DAO members who will receive a total of 109,048 DAI (worth 109,048 USD).

The Chainlink Automation integration itself on the Keeper Network will also receive 181,000 DAI (equivalent to 181,000 USD). This amount is distributed over 6 months with 1,000 DAI per day.

Chainlink’s LINK token price rose about 8% before turning around to trade around the current $6.98 mark.

1h chart of the LINK/USDT pair on Binance at 10:20 AM on 10/02/2023

DeFi giant MakerDAO has seen a marked drop in revenue in 2022, thereby deciding to “pivot” to real assets and make this the main source of income for the protocol. According to Steakhouse, the circulating supply of stablecoin DAI is currently 5 billion DAI at the end of 2022, down 43% from 9 billion DAI in the same period a year ago.

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