Bybit Exchange Turns to Chainlink for Secure Price Oracles
Cryptocurrency and crypto derivatives exchange platform Bybit has announced a partnership with Chainlink aimed at helping its traders weather periods of high crypto price volatility by using secure price feeds.
Using Credible External Data to Help Traders Make Better Decisions
Following the recent listing of Chainlink’s LINK token and the addition of several markets to its perpetual futures trading platform, Singapore-based exchange Bybit has now recruited Chainlink to enhance trading on its spot marketplace. From now on, traders buying and selling key cryptocurrencies such as BTC, ETH, XRP, EOS, LTC, XTZ, and LINK on Bybit are able to rely on Chainlink’s Price Reference Data as an additional aid for their decision-making.
Bybit’s rationale is that enabling users to consult a secure external price source in addition to the indicators from ongoing trading on its own markets will enable them to better handle periods of high volatility for which cryptocurrencies are prone.
The fact that Chainlink’s network of oracles is decentralized and Sybil-resistant makes the price data delivered by it a credible guide to action for traders. Also, given that the Chainlink-provided data for each trading pair is aggregated from several sources, its use could help traders correctly anticipate price movements before they also play out on Bybit. Finally, the sources of Chainlink’s price feeds are frequently defi protocols, and Bybit seems to consider the fast-moving activity that unfolds on them to be even more advantageous for helping its traders handle price swings.
“We’re excited to integrate Chainlink in order to make widely-used price reference data from the DeFi market available to our traders,” commented CEO of Bybit Ben Zhou. “By integrating Chainlink, we are able to provide an accurate source of price data that is highly decentralized and transparent, expanding the amount of resources our traders have access to.”
Bybit Keeps on Trucking
Bybit has been gaining ground on several of its major competitors lately. While it has been adding new markets and features, two major derivatives-focused platforms – OKEx and BitMEX – have been plunged into turmoil by government enforcement actions in China and the U.S.
The Malta-based OKEx has seen its Chinese founder and key custodian Mingxing “Star” Xu detained in China on undisclosed charges. While the exchange has been claiming that this development will not disrupt its normal operations, it has still not resumed cryptocurrency withdrawals, prompting speculation about an ongoing exit scam or hack coverup. The price of OKEx’s native token has unsurprisingly tumbled as a result.
Meanwhile, BitMEX exchange headquartered in the Seychelles has been trying to turn the page after the joint enforcement action by the U.S. Department of Justice and CFTC triggered by the company’s longstanding failure to adopt the KYC procedures required for serving U.S. clients. The exchange had to replace its top management, who are facing criminal charges, and saw its BTC deposits decline by 30% in the wake of the indictments. BitMEX has since expedited the full implementation of user identity verification that had originally been scheduled to become mandatory in February 2021.