WOO network announced that it will start using Chainlink to launch customized institutional oracles based on the platform’s market data so let’s read more in our latest Chainlink news today.
WOO network announced WOOFi as a new capital-efficient DEX powered by the institutional hedging techniques that will be used alongside Chainlink to create institutional-ready market data oracles. The WooFi swap proof of concept on Polygon and BSC traded about $4 billion in volume which only shows the effectiveness of the market algorithm known as the Synthetic Proactive Market Making. The DEX relies on the highly granular market data from the network and to be pushed into the blockchain in order to replicate a Cefi order book on-chain.
Unlike other data oracles, that are pushing the updates after the price deviates a new amount of previous prices as WOOFi needs more parameters including spread, mid-prices, and liquidity coefficient. It also requires the oracles to be updated more often and ensure that DEX can operate with about 0.1% swap fees. It was essential that the oracle technology is capable of maintaining consistent uptime and in volatile market conditions and the Chainlink proved to be the best fit for supporting this customized solution.
The Chainlink Network was operational for 2 years with strong uptime and resilience during the intense conditions including high volatility and network congestion. It supports over 600 price feeds on other blockchains that help secure tens of billions of dollars in the on-chain value for leading CeFi and Defi projects such as Celsius, Compound, Aave, and more. Chainlink supported its infrastructure and data feeds which are maintained by the decentralized networks of nodes that are run by DevOps in order to provide the users with reliable data feed.
The initial decentralized oracle network shows the start of a larger vision of the network where most numbers of DONs are running at the same time and independently with all their custom design patterns, security configurations, and external connections. WOO Network is leveraging the Chainlink infrastructure to create its own independent DONs which consist of a range of on-chain data feeds and parameters that are derived from WOO network itself. By combining the experience and the technical expertise of the oracles with the rich market data of the network it is possible to create customized oracles for WOOFi based on the data and liquidity provisioning strategies of the network.
The best CeFi pricing meets the best oracle in DeFi.
— WOO Network (@WOOnetwork) October 29, 2021
WOOFi is the main example of on-chain products that can be created using Chainlink and other datasets to benefit DeFi users by delivering institutional-grade strategies, with low fees, deep liquidity and competitive prices. Moving forwards, WOO Network will cooperate with Chainlink and will make the market pricing oracles available to third-party decentralized trading platforms which could utilize the oracle’s pricing to provide even more reliable price feeds on a wide range of cryptos.
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