WOO Community immediately introduced WOOFi, a brand new capital-efficient DEX powered by institutional hedging and market-making strategies, can be used alongside Chainlink to create institutional-ready market information oracles.
Since Spring of 2021, the WOOFi Swap proof of idea on BSC and Polygon has traded almost $4 billion in quantity, demonstrating the effectiveness of the market-making algorithm often called Artificial Proactive Market Making (sPMM).
The necessity for extremely dependable market information
The DEX depends on highly-granular market information from the WOO Community to be pushed incessantly into the blockchain with the intention to replicate a CeFi order guide on-chain.
Not like different market information oracles that push an replace after the value deviates a set quantity from the earlier value, WOOFi wanted further parameters together with mid-price, unfold, and a liquidity coefficient. WOOFi additionally requires the oracle to be up to date extra typically with the intention to make sure the DEX can function with solely 0.1% swap charges.
On high of those demanding necessities, it was additionally important that the oracle expertise be able to sustaining extremely constant uptime, even in unstable market circumstances, and the Chainlink proved to be a pure match for supporting this custom-made answer.
The Chainlink Community has been operational for two+ years with excessive uptime and resilience throughout even probably the most intense circumstances, together with durations of excessive volatility and community congestion.
It helps over 600 value feeds throughout a large number of blockchains, which at present assist safe tens of billions of {dollars} in on-chain worth for main DeFi and CeFi initiatives like Aave, Celsius, Compound, and extra.
Powering superior oracles with Chainlink
To date, Chainlink has supported infrastructure and information feeds which can be fastidiously maintained by a decentralized community of nodes run by skilled DevOps with the intention to present customers with a dependable information feed.
These preliminary decentralized oracle networks (DONs) showcase the start of a a lot bigger imaginative and prescient of the Chainlink Community, the place any variety of DONs are operating concurrently and independently of each other with their very own customized design patterns, exterior connections, and safety configurations.
WOO Community is leveraging Chainlink infrastructure to construct its personal impartial DONs, which encompass a spread of on-chain information feeds and buying and selling parameters derived from WOO community itself.
By combining the expertise and technical experience of Chainlink oracles with the wealthy market information of WOO Community, it’s potential to create custom-made oracles for WOOFi based mostly on the institutional information and liquidity provisioning methods of WOO community.
WOOFi is simply the primary instance of the on-chain merchandise that may be created utilizing Chainlink and superior datasets to profit DeFi customers by delivering institutional-grade liquidity-providing methods, providing customers low charges, deep liquidity, and aggressive costs.
Shifting ahead, WOO Community will work with Chainlink to make these market pricing oracles out there to third-party decentralized buying and selling platforms. These platforms might make the most of the oracle’s pricing to offer dependable value feeds throughout a variety of cryptocurrencies, together with the WOO Token.
Due to Chainlink’s dependable node operators and strong monitoring methods, we’ve nice confidence in utilizing Chainlink infrastructure to assist custom-made market information oracles for our inner operations and choose companions.
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