WOO to Use Chainlink for Institutional Market Data Oracles
WOO Network recently announced launching its customized Chainlink oracles. The venture will combine its liquidity-providing strategies and Chainlink’s oracle technology to deliver the market data oracles.
Chainlink has already established esteemed integrations in the past few months. Therefore, the latest announcement takes every Chainlink price prediction towards a positive outlook.
WOO Network released a new DEX backed by market-making techniques and institutional hedging named WOOFi Swap. Since its release, the DEX has traded almost 4 billion dollars in volume on Polygon and the Binance Smart Chain. The figures show the effectiveness of the sPMM (Synthetic Proactive Market Making), the advanced market-making algorithm.
The exchange relies on precise market data from WOO Network to replicate a centralized finance order book on-chain. Unlike most market data oracles, WOOFi does not force an update after the price changes from the previous figures. Instead, it requires extra parameters like a spread, liquidity coefficient, and mid-price.
It also needs to update the oracle frequently to ensure the decentralized exchange operates with 0.1% swap fees for better capital efficiency. In addition, the network requires an oracle technology that stays upfront even during diverse market conditions.
With such requirements on the table, Chainlink emerges as the most natural fit. Chainlink boasts 2+ years of uptime with extreme resilience even in the most drastic situations. These include unavoidable scenarios like network congestion and high volatility.
Moreover, the network supports 600+ price feeds on multiple blockchains, securing billions of dollars in on-chain value for CeFi and DeFi projects. Some of the names include Celsius, Aave, Compound, etc. You can walk through our Compound Finance reviews to know more about the platform.
Chainlink has associated data feeds and infrastructure operated by the nodes’ decentralized networks monitored by DevOps. In addition, WOO Network will leverage Chainlink to develop customized DONs, comprising multiple on-chain trading parameters and data feeds derived from WOO Network.
WOOFi will develop precise oracles by merging the technical expertise and experience of Chainlink oracles with WOO Network’s market data. In the future, WOO Network will also deliver oracles to third-party trading platforms. As a result, the exchanges can use the price feeds across numerous cryptocurrencies.
WOO Network shows great confidence and potential to create a highly-functional market data oracles system.