Over the years, several new Crypto lending platforms have emerged, and one of the popular ones is Nexo, the world’s first Instant Crypto-backed Loans provider. Less than two years from launch, the platform is now preparing to enter the brokerage market and has inked a partnership with decentralized oracle network Chainlink, to add more transparency to its operations.
According to a July 8 announcement, the Switzerland-based lending platform and the company behind the popular cryptocurrency Link will now be collaborating to integrate Chainlink into Nexo’s lending and trading operations.
With Chainlink, the crypto lender wants to decentralize its lending, OTC, and institutional capabilities through Chainlink’s oracles, and thus develop a prime brokerage suite for its customers.
The oracle network would also enhance Nexo’s security infrastructure and enable increased custody of user funds by combining Chainlink’s price reference data oracle networks with Nexo’s security network that manages more than $600 million in user funds to provide additional security to the platform’s operation.
The Co-founder and Managing Director of Nexo, Antoni Trenchev, commented on the integration stating:
“Nexo’s mission is to bridge the gap between digital and traditional finance and our developing collaboration with Chainlink brings us a step closer to achieving this. We are very much on the same page — both in terms of how our respective services currently align, and in terms of our shared vision for a digital, decentralized future of finance. We’re thrilled to have them on board.”
More than just a security buff
Besides buffing up Nexo’s security, Chainlink is also set to generate audit trails of the lender’s lending and borrowing operations on-chain, and will also supply reliable exchange rate to calculate interest payments for scenarios when Nexo loans make interest payments in a separate currency than what the loan was denominated in.
Furthermore, Chainlink’s price feeds would also alert Nexo when a user hit their liquidation price by offering collateralization checks on borrowers.
Sergey Nazarov, Co-founder of Chainlink, commented on the development:
“We’re excited to bring Chainlink’s secure and reliable oracle solutions to Nexo’s popular lending platform to enable users to independently verify on-chain the interest and collateralization rates they should receive. This allows Nexo to provide additional trust and transparency to their large user base.”
Chainlink has seen a spree of partnerships and endorsements from big names over the past year. Last month, the company integrated its price reference data with KyberSwap, a decentralized crypto exchange on the Ethereum network, to provide KyberSwap users with more dependable price feeds for computing slippage rates and further secures the network against price manipulation.
The blockchain project was also recognized as a technology pioneer and one of the top 100 companies for 2020 by the World Economic Forum (WEF). This was a great milestone for both Chainlink and the crypto industry as a whole because the previous picks for this have been tech behemoths like Google, Twitter, and Airbnb.
The growing popularity of the company has made its native cryptocurrency Link, one of the best performing altcoins over the past few months. As of now, Link is trading at $6.26 and is up 40.3% from last month.