Swingby Protocol announced the integration of Chainlink’s oracle solutions- Price Feeds and Proof of Reserves on its network. Swingby is an ERC20 BTC enabling cross-chain protocol that enables financial asset transactions via a trustless ecosystem. Swingby’s Skybridge is a staking-powered decentralized bridging protocol for the cross-chain movement of crypto assets. It enables fast trustless bridges between the Bitcoin blockchain, Ethereum, and other distributed ledgers. Chainlink is a leading oracle solutions provider dedicated to the implementation of smart contracts.
Swingby further explained this integration on its Medium blog. The rationale behind the integration is to attain three goals, Protection from unpegging, Security from over-staking protection, and risk mitigation. Chainlink’s Oracle solutions will move data into the risk mitigation engine, which will help Swingby identify various risks since the data fed by Chainlink into Skybridge’s engine involves both exchange rates and current collateralization ratios.
Chainlink’s Head of Business Development, Daniel Kochis, shared his view on this new development and stated that Swingby would be able to secure the Skybridge against various risks. Through Chainlink’s oracle solutions which are built to reduce the potential risks on networks.
Jacob Plater, CEO of Swingby, mentioned that the integration would enable Skybridge’s security, allowing it to support more blockchains and higher amounts of cross-chain asset value.
Swingby’s integration will address unpegging and overstaking. It will also integrate TSS technology and enable cross-chain swaps with a wide variety of assets and networks in the future.
The current risk status of the protocol can be assessed by retrieving the prices/reserve data. This can be done by third-party validators or Chainlink keepers. If the new risk status of the protocol properly changes, the network rewards the third-party for a price higher than the cost of retrieving and posting the set of relevant prices from the oracle provider.
Swingby users can now be assured that they’ll always receive highly available, accurate, and tamper-resist data feeds, thanks to Chainlink’s reliable nodes, high-quality data, and decentralized security.