In a massive move, cryptocurrency exchange Huobi will integrate price data with the help of Chainlink ecosystem to improve its data integrity and provide more to the point information about the price rate.
With the establishment, Huobi has gone a step ahead of Binance which was the first major exchange to provide their data to Chainlink oracles in October 2019. It is understood that the node on the system will be through the Huobi wallet.
The wallet will allow the exchange to sign its own price data allowing users to confirm that any exchange data coming from the Huobi Node is authentic and direct from the source.
“DeFi offers a unique value proposition of providing financial products that are transparent, open, and programmable. We are very excited to accelerate our involvement in this emerging trend by providing Chainlink users access to Huobi Global exchange data, as well as running our own Chainlink Node,” Huobi Wallet CEO Will Huang stated:
Notably, the first batch of price pairs will include BTC/ETH, BTC/USDT, ETH/USDT, and LINK/ETH, with more to follow.
Mission to improve its credibility
For Huobi it is a mission to improve its credibility after concerns around volume inflation last year. By running a node, the exchange’s reputation will be on the line should any of the data shared through Chainlink prove to be inaccurate.
In 2019, Huobi partnered with Global Digital Finance (GDF), co-chairing the Market Integrity Working Group with Solidus Labs.
Last year, a Bitwise report implied that Huobi was reporting inflated trading volume, causing an internal investigation to weed out any potential wash trading strategies by market makers.
“We did identify a few of our market makers conducting what we suspect may have been wash trading for the sake of performance and marketing purposes. We have already communicated with these market makers and they have discontinued the strategies in question,” Huobi Global CEO Livio Weng admitted wash trading may have occurred.