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    Why DeFi Projects Choose Chainlink Instead Of Building Their Own Oracles

    Chainlink’s fundamental purpose is determining the fairest prices for assets, typically digital assets. To that end, the Chainlink network requires many inputs to accurately pair price data from the real world across blockchains. Therefore, as more protocols integrate Chainlink oracles, the strength of the network increases. 

    How Chainlink Empowers DeFi 

    By providing price data to hundreds of protocols, Chainlink has solidified itself as a pivotal part of the DeFi ecosystem. It continues to be one of the fastest-growing protocols in all of DeFi, adding over 250 new projects to its ecosystem in Q3 alone.

    The Chainlink oracle network comprises Sybil-resistant node operators run by leading blockchain DevOps and security teams. With each new integration, the network becomes even more accurate and secure. This is why it’s more advantageous for emerging DeFi projects to integrate Chainlink than to build their own oracle.

    Cryptex is one of hundreds of DeFi projects that have chosen to integrate Chainlink oracles instead of building their own. Cryptex uses a Chainlink oracle to ensure its Total Crypto Market Cap (TCAP) index token remains true to its peg. 

    Why Accurate Price Data Is Crucial

    Accurate price data is essential to the success of most DeFi protocols. The reduction of arbitrage opportunities in exchange for a single common reported price prevents people from exploiting unnecessary incongruences in the market. 

    AMM and index users must be able to trust that the price they see on screen is accurate. Even a one-second delay in updating price information could cost a user money. Chainlink has proven over time that it creates a standard users can depend on.

    Building The Future

    Choosing Chainlink over alternative price oracles also increases the market exposure for projects like Cryptex. When a crypto project integrates Chainlink, they share detailed information about their project via a smart contract that is specially designed for routine queries. Every single one of these contracts is displayed with Chainlink Data Feeds and is therefore open for developers to utilize in building their own projects.

    As the industry-leading oracle network, Chainlink powers the vast majority of DeFi. Every EVM-compatible mainnet, plus Solana and Terra, enjoy price oracle support from Chainlink. Chainlink guarantees much-needed peace of mind to DeFi users and makes developers’ lives much easier. For emerging DeFi projects that are reimagining the way the world works, Chainlink makes accurate price data one less thing to worry about.

    To learn more about Cryptex, visit their website, Twitter, Telegram, Discord, Medium, Reddit and YouTube

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