coincodex.com
Key takeaways
- QiDao has announced that it will integrate Chainlink’s CCIP across Ethereum, Polygon, Optimism, Arbitrum, and Avalanche
- CCIP enables automated cross-chain messaging and improved security features when compared with alternative multi-chain solutions
- CCIP can help to future-proof QiDao as the Web3 ecosystem becomes increasingly multi-chain, in addition to improving efficiency for QiDao’s internal operations
QiDao has announced that it will integrate Chainlink’s cross-chain interoperability protocol (CCIP) as part of a network upgrade.
Chainlink’s CCIP enables secure cross-chain messaging for projects, which can help with a range of cross-chain operations including the automatic collection of governance votes from disparate blockchains and bridging digital assets from one network to another.
QiDao has stated that Chainlink’s CCIP helps to create “robust, anti-fragile systems across multiple blockchains,” as the protocol includes a Risk Management Network that automatically monitors cross-chain activity for malicious behaviour.
QiDao, which already uses Chainlink’s oracle solutions to source real-time price data, will soon integrate CCIP with its protocol on a variety of EVM blockchains including Ethereum, Polygon, Optimism, Arbitrum, and Avalanche. This is expected to solve key inefficiencies with the way that QiDao currently operates, saving time and resources via automated cross-chain interactions.
As stated by Pablo the Penguin, a core QiDao contributor, CCIP will “help connect QiDao’s cross-chain community as the protocol scales across the multi-chain Web3 ecosystem.”
What is QiDAO?
QiDao (QI) is a decentralized lending protocol that enables users to mint and borrow MAI, which is an overcollateralized stablecoin. QiDao’s cross-chain stablecoin protocol has been integrated with a variety of EVM blockchains, allowing users to mint MAI after staking a crypto assets on Ethereum, Polygon, Optimism, Arbitrum, Avalanche, BNB Chain, and Gnosis Chain.
LINK, CRV, ETH, and many more digital assets can be used to mint MAI on the QiDao platform. Each user needs to stake 130-150% of the MAI being minted, which helps to provide a buffer against market volatility and maintain MAI’s dollar peg during all market conditions.
How does Chainlink’s CCIP work?
Chainlink’s CCIP is a “time-tested and robust” framework for cross-chain communications. It enables disparate blockchain networks to send data back and forth, including transaction information and other on-chain activity.
The CCIP consensus and interoperability layer is secured by Chainlink’s oracle solutions, which, according to QiDao, have collectively processed over $8 trillion worth of transaction value since their inception.
Chainlink’s CCIP can be seamlessly integrated with any decentralized application (dApp), offering a unified cross-chain messaging tool that has a single user-facing dashboard. The architecture is also known to be highly scalable as it removes the need for developers to configure the codebase specifically for each blockchain.
QiDao, referring to an increasing need to support cross-chain messaging in Web3’s fast-growing multi-chain landscape, has stated the importance of CCIP being future proofed. The protocol is upgradeable by design, which enables the inclusion of additional blockchain networks over time.
What is Chainlink?
Chainlink is a decentralized oracle network that allows smart contracts to securely connect with data from off-chain sources. Chainlink’s industry-leading oracle solutions ensure that data is reliable, tamper-proof, and resistant to manipulation, while also enabling a wider variety of custom use cases for blockchain applications.
The native token for the Chainlink ecosystem, LINK, serves as an incentive mechanism for node operators who support the blockchain infrastructure and as a means of payment for Chainlink’s services. The token is currently the twentieth-most-valuable cryptocurrency by market capitalization, after first launching in 2017.
LINK price prediction
The LINK token has underperformed most of the crypto markets during 2023. While Bitcoin (BTC) has risen over 75% YTD, LINK has remained relatively stable despite being up 31% in the same timeframe.
A comparison of LINKUSDT price action with BTCUSDT since January 2023, via TradingView
The current price of LINK is $7.38, up 4.87% in the past 24 hours. The CoinCodex price prediction algorithm expects LINK to climb a further 27.3% over the coming 30-day period, taking the price to $9.34 by 7th September 2023.