Brother Sun's big move! TRON joins Chainlink's expansion plan, what impact does it have on both ecosystems?

As an indispensable information provider in the Decentralized Finance zone, Chainlink has a significant influence on both public chains and TradFi zones. As co-founder Sergey Nazarov described, 'Chainlink is not just an oracle', but also one of the most widely adopted Smart Contract platforms in the world, with products including:

Chainlink Data Feeds - Providing on-chain price information for Decentralized Finance

Chainlink VRF – Provides verifiable random function for GameFi, Non-fungible Token projects

Chainlink Automation - Assist in the automated management and on-chain governance of DAO treasuries

Chainlink Functions - Connect smart contracts to APIs to obtain off-chain information

Chainlink Proof of Reserve - Create off-chain asset proof for RWA or TradFi

Chainlink CCIP – provides standardized cross-chain interaction protocol for Decentralized Finance and TradFi

Chainlink Data Streams – Providing price information updates with lower latency

The collaborative work of these seven products enables Chainlink to build a comprehensive Smart Contract solution and provide services to various types of blockchain or enterprise project needs. To meet the large-scale adoption of various products, Chainlink launched the Chainlink SCALE (Sustainable Chainlink Access for Layer 1 and 2 Enablement) plan in September 2022, with the goal of further accelerating the ecological development of Layer1 and Layer2 public chain projects through strategies such as reducing operating costs, integrating Chainlink products, and supporting DApps development.

Joining hands with Chainlink, TRON promotes the development of Decentralized Finance

TRON founder Justin Sun announced last Thursday on X platform that TRON has joined Chainlink SCALE and will adopt Chainlink Data Feeds as the official Oracle Machine, completely ending its reliance on the original Oracle Machine WINkLink.

Chainlink Labs Block chain collaboration leader Thodoris Karakostas pointed out that through reliable, accurate and verifiable decentralized information providers, Chainlink will provide the infrastructure for Tron ecosystem developers to build next-generation Decentralized Finance applications, thereby promoting the development of the overall Decentralized Finance zone.

Image Source: X/@justinsuntron A photo of Justin Sun and Chainlink founder Sergey Nazarov

Tron DAO support, to provide a developer-friendly environment for the integration of chainlink

Chainlink SCALE will provide TRON developers with high-quality on-chain price information to promote the growth and adoption of the TRON ecosystem. Sam Elfarra, spokesperson for Tron DAO, stated that during the initial integration of Chainlink Data Feeds, Tron DAO will bear some of the Gas Fees required for information dissemination until various Decentralized Finance teams mature and can fully afford these costs. This means that in the future, TRON Decentralized Finance development teams will be able to enjoy a more friendly and cost-effective launch environment in terms of Price Feeds integration.

"The unparalleled security and reliability of chainlink make it the preferred oracle of TRON, and through this collaboration, we will be able to promote the ecological expansion of TRON through leading Web3 price information oracles."

Why did Tron replace Decentralized Finance Oracle Machine?

Previously, Tron had already adopted the Oracle Machine WINkLink, which is responsible for providing price information; however, the development team still decided to completely replace WINkLink, possibly based on the two advantages of security and reliability, in addition to the official explanation.

Chainlink product integrity

Price Feeds is just one of the seven products of Chainlink; joining Chainlink SCALE means Tron has the opportunity to integrate more Chainlink products, thereby expanding TRON's coverage and competitiveness in various Web3 tracks, thus improving its survival rate in the future public chain war.

Integration of Chainlink CCIP

Chainlink CCIP is a cross-chain interaction protocol widely penetrated in Decentralized Finance and TradFi zone. If Tron can adopt the product through Chainlink SCALE in the future, the economic benefits it brings will not only be limited to the integration of cross-chain interaction liquidity in Decentralized Finance, but also imply potential opportunities to participate in SWIFT tokenization trials, which is expected to lead TRON towards practical development.

What are the benefits of cooperating with TRON for Chainlink?

The two largest Decentralized Finance protocols on TRON are JustLend and JustStable, with a total locked value (TVL) of $4.411 billion and $1.674 billion respectively. This data represents over 85% of the liquidity on TRON.

Image source: DefiLlama Tron TVL of each protocol Lock-up Position

At present, both JustLend and JustStable are provided with Price Feeds by Oracle Machine WINkLink, benefiting from a total TVL of up to $6.115 billion. WINkLink has become the third largest Oracle Machine project in the sector, with a Dominance second only to Chainlink (46.96%) and Chronicle (13.33%).

According to the official press release, JustLend and JustStable price oracles will be fully replaced by Chainlink Data Feeds in the future, which means Chainlink will completely take over WINkLink's 11.52% stake in the collateralized segment, further solidifying its dominant position in the oracle market.

Image source: DefiLlama Oracle Sector Dominance

Overall, the collaboration between TRON and Chainlink benefits both parties greatly. TRON can enhance its market coverage through the versatility of Chainlink and have the opportunity to access the massive Liquidity in the TradFi zone. On the other hand, Chainlink can fully capture the total collateral value of TRON and expand its penetration rate in the Decentralized Finance zone as one of the few non-EVM public chains integrated.

【Disclaimer】There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Investing based on this is at your own risk.