CoinDesk
Chainlink is extending reference pricing for stocks, commodities and other traditional assets through weekends and holidays, with Aave as its launch partner. Its Chainlink 24/7 service switches between trading-session data and quotes from perpetual futures venues when traditional markets are closed. Aave plans to use the feeds on Horizon, its institutional lending platform, starting with tokenized versions of heavily traded U.S. stocks.
Why it matters
Blockchain markets operate around the clock, but the traditional assets they track do not. During market closures, applications have had to pause activity, use the last available price or build their own systems to value assets. Chainlink 24/7 is designed to provide one continuous reference-price series, using derivatives quotes for off-hours pricing rather than implying that the underlying traditional asset is trading.
The service aggregates quotes from multiple perpetual futures venues, filters stale inputs and limits the influence of outliers. Chainlink introduced 24/5 pricing for U.S. stocks and ETFs in January, covering pre-market, regular, post-market and overnight sessions. The company says its weekday pricing infrastructure now covers more than $1.6 billion in tokenized stocks.
Market impact
For Aave's Horizon, continuous feeds can support risk and collateral valuation for tokenized stocks even when traditional exchanges are closed. Chainlink Data Feeds publish prices directly on blockchains for lending protocols, while Data Streams provide faster updates for trading platforms and prediction markets and identify the current market session so applications can adjust risk settings.
The launch addresses an infrastructure constraint for tokenized traditional assets: on-chain applications can remain active around the clock, but their pricing needs to account for when the underlying markets are open and what off-hours derivatives quotes represent.
Frequently asked questions
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How does Chainlink 24/7 price traditional assets when markets are closed?
It uses quotes from perpetual futures venues as off-hours reference prices, then switches back to trading-session data when traditional markets reopen.
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Which Aave platform will use Chainlink's new pricing feeds?
Aave will adopt the feeds for Horizon, its institutional lending platform, beginning with tokenized versions of heavily traded U.S. stocks.
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Why do tokenized assets need weekend pricing?
Blockchain markets operate around the clock, while traditional exchanges close on weekends and holidays. Continuous reference pricing can help applications value assets during those closures.
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How does Chainlink handle stale or unusual off-hours quotes?
The service aggregates quotes from multiple perpetual futures venues, filters stale inputs and limits the influence of outliers.
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What is the difference between Chainlink Data Feeds and Data Streams?
Data Feeds publish prices directly on blockchains for protocols such as lending applications. Data Streams provide faster updates for trading platforms and prediction markets, and identify the current market session.
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