Chainlink (Link) has announced the launch of his Chainlink Defi Yield Index (CDY Index) with the aim of streamlining the analysis of Decentralized Finance (Defi) credit rates by collecting market -wide data.
After this announcement, the price of Link saw an increase, whereby the token traded at $ 24.91, which marked an increase of 2.5% in the last 24 hours, because it continues to recover from the decrease from January 27.
How the KettingLink CDY index will influence the market
The CDY index is a crucial tool that is designed to improve the transparency and efficiency of the Defi space.
By using the established Framework of Chainlink, in combination with the advanced blockchain index and database technology from Space and Time, aggregates the CDY index -leen interest rate on various Defi platforms.
This aggregation is intended to give a clear, real-time picture of the credit landscape, which is crucial for both Defi participants and traditional financial institutions that want to tap into blockchain-based opportunities.
The need for such an index stems from the complexity of Defi, where the loan percentages are not influenced by a single umbrella speed, but by countless factors in different protocols.
Chainlink, with its reputation for safe and accurate data feeds, steps in to fill this gap and offers a standardized approach to understanding Defi revenue options.
For institutions of capital markets, this index offers a window on the high -interest possibilities of Defi, so that they can explore new roads for investments, risk management and capital deployment.
Traditional financial institutions can also evaluate with the same strictness that they apply to conventional markets, thanks to the aggregation of the CDY index of credit rates for large crypto activa such as USDC, USDT, packed BTC and packed ETH.
For Defi protocols itself, the index acts as a beacon of transparency and helps to attract more investments by clearly showing the yield options.
This transparency can lead to increased liquidity, because more investors are confident in the activities of the market.
Consequently, this can cause more capital in these protocols, which increases the yields further due to the dynamics of supply and demand.
Coupling price response
The reaction of Chainlink’s native token to the CDY index is positive, proven by the immediate price increasing price after the announcement.
With a current market capitalization of $ 15.82 billion and a 24-hour trade volume of $ 584 million, the performance of Link Investor Optimism reflects.
In the past month, Link has shown a price increase of 24.5% and an increase of 57.1% during the year, indicating a strong bullish sentiment.
The launch of the CDY index not only underlines the dedication of Chainlink to promote Defi, but also strengthens its position as a leader in decentralized oracles.
By offering a reliable and extensive size for Defi -credit rates, Chainlink effectively bridges the gap between traditional finances and the budding Defi Ecosystem.
The Postlink taps higher when Chainlink CDY Index launches to collect Defi -credit rates, first appeared on Invezz
