Cryptocurrency exchange Kraken has announced, that it is going to list Chainlink (LINK) and Dai (DAI) from September 25.
Kraken will allow the following trading pairs:
- LINK: LINK/USD, LINK/EUR, LINK/XBT, and LINK/ETH.
- DAI: DAI/USD, DAI/EUR, DAI/USDT, and ETH/DAI.
Confirmation for each trade will be 6 minutes as 30 confirmations will be required for one trade to go through.
The exchange will allow only limit orders at the start and has asked investors to vary of orders which trigger stop-loss mechanisms. Once initial deposits are cleared, trading will be allowed in both the cryptocurrencies.
Kraken will allow trading in LINK and DAI on Kraken, Kraken Pro, and its OTC services.
Launched in December 2017, Dai is a decentralized Ethereum ERC20 token whose value will always be $1. It is strictly speaking not a stablecoin as there is no fiat currency backing it. There is no bank holding a dollars to back Dai. Its value has just been decided by its users to be $1. Its algorithm is such that when its value increases, users are tempted to sell it, and when its value falls, users are incentivized to buy it. This balance of push and pull has worked till now to keep the value of Dai just in the vicinity of $1. That reduces volatility in pricing of Dai.
The stability of Dai makes it very attractive for businessmen, shopkeepers, and other merchants as its value will not change it the time taken for the transaction to complete.
Since news of its listing on Kraken, LINK has witnessed a slight uptick in pricing. Chainlink’s LINK is also an Ethereum ERC-20 token. It uses data oracles to connect its blockchain and smart contracts with real-world data, payments, etc. The data circles pass data on to the smart contract, which then carries out predetermined actions. To ensure the reliability of data, Chainlink enters into a minimum service-level agreement (SLA) with participating oracles. It also has validation mechanisms for data oracles.