Major cryptocurrency exchange Huobi will integrate their pricing data with the Chainlink ecosystem in an effort to improve the integrity of its own data and provide more accurate pricing information.
While Binance was the first major exchange to provide their data to the Chainlink oracle in October 2022, Huobi has gone a step further by running its own nodes on the system via Huobi Wallet. This allows the exchange to sign its own pricing data allowing users to confirm that any exchange data originating from the Huobi Node is genuine and straight from the source.
“DeFi offers a unique value proposition of providing a transparent, open and programmable financial product. We are excited to accelerate our engagement in this growing trend by providing Chainlink users access to Huobi Global exchange data, as well as running our own Chainlink Nodes. ”
Huobi Wallet CEO Will Huang
The first batch of prices will include Pairs BTC/ETH, BTC/USDT, ETH/USDT, and LINK/ETH, with more to follow.
Improving Market Integrity
Huobi appears to be on a mission to boost its credibility following concerns around volume inflation last year. By running the node, the reputation of the exchange will be at stake if any of the data shared through Chainlink is proven to be inaccurate.
As one of the largest crypto companies in Gibraltar. The integration comes after the country’s ongoing efforts to reduce market manipulation by crypto companies over the past few months. Last year Huobi partnered with Global Digital Finance (GDF), co-leading the Market Integrity Working Group with Solidus Labs.
Concerns Over Market Manipulation
In 2022, a Bitwise report implied that Huobi was reporting increased trading volume. Which led to an internal investigation to rule out any potential trading strategies by market makers.
Huobi Global CEO Livio Weng admits a trading wash is possible:
“We did identify some of our market makers doing what we suspected might be laundering trades for performance and marketing purposes. We have communicated with these market makers and they have discontinued the strategy in question. ”
Since then Huobi has moved into the top 10 exchanges on Messari’s ‘Real Volume’ list.