Cardano & Chainlink Developing UTxO DeFi Oracle for Multi-Chain Expansion

• Cardano and Chainlink partnership aims to build a versatile oracle framework not limited to a single ecosystem, potentially boosting decentralized finance capabilities.
• Cardano founder Charles Hoskinson emphasized that the framework must support multiple chains to ensure cost-effectiveness and broader adoption.

A potential partnership between Cardano (ADA) and Chainlink (LINK) is in the pipeline. Both blockchain ecosystems are looking into how they can boost the UTxO-based decentralized finance (DeFi) space. Cardano founder Charles Hoskinson spoke about these developments in a recent interview on the David Gokhshtein podcast.

Will Cardano & Chainlink Get Into A Partnership?

As per Hoskinson, negotiations between Cardano and Chainlink teams are in the works to establish a DeFi oracle solution beyond a single blockchain. The project seeks to connect a wider array of UTxO-based networks, such as Bitcoin, Litecoin, and Dogecoin. “It’s bound to happen; it’s just a matter of time,” Hoskinson stated when questioned regarding the collaboration’s possibility.

The aim of this partnership is to create an oracle framework that is versatile across various blockchain networks instead of being limited to one ecosystem. “What they’re working on right now is more of a universal platform,” he clarified. He also noted that the aim is to create a system that is not only for Cardano, but also for other UTxO blockchains exploring DeFi.

As the world of decentralized finance expands, so too has the need for dependable oracles: those systems that deliver external data to smart contracts. Chainlink, which is already a prominent figure in the oracle world, seeks to spread its wings and gain traction in UTxO-based networks. “Obviously, Chainlink wants a foothold in this space and to attract users from these ecosystems,” Hoskinson explained.

This collaboration demands careful planning to be easily incorporated. “Their framework can’t be designed just for Cardano alone,” he noted. Rather, the method should support the whole UTxO space so that multiple chains can utilize the Oracle network cost-effectively.

Although both sides are working diligently on the initiative, agreeing on details like timelines and commercial terms continues to be a challenge. “We have teams on both sides engaged in discussions, but we haven’t locked in exact dates or terms yet,” Hoskinson divulged. In spite of these challenges, the continued partnership between Cardano and Chainlink represents a major milestone toward improving DeFi functionality on various UTxO-based blockchains, as reported by CNF.

Cardano’s Bearish Pattern Holds, Chainlink Drops Over 7%

Despite these potential positive developments, Cardano continues to struggle as its price remains under pressure following a sharp downturn from its March 1 high of over $1. After a brief recovery attempt, ADA slipped to $0.67 before stabilizing around $0.70. However, market indicators suggest that a return to previous highs remains unlikely.

Source: TradingView

A bearish flag pattern has emerged on ADA’s daily chart, indicating the potential for further downside movement, as highlighted in our previous story. The pattern developed after an initial rally to $1.13 was followed by a steep drop, leading to a consolidation phase between $0.65 and $0.74.

Meanwhile, the Moving Average Convergence Divergence (MACD) and its Exponential Moving Averages (EMAs) are hovering around the zero line, reflecting market uncertainty and resistance at $0.81. Whilst, in a broader market decline, Chainlink also recorded a notable loss, falling 7.47% to $14.33.

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