WOO Community, a cryptocurrency buying and selling platform, at the moment introduced WOOFi, a brand new capital-efficient DEX powered by institutional hedging and market-making strategies. Since Spring of 2021, the WOOFi Swap proof of idea on BSC and Polygon has traded practically $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 knowledge
The DEX depends on granular market knowledge from the WOO Community to be pushed incessantly into the blockchain with a purpose to replicate a CeFi order ebook on-chain.
In contrast to different 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 usually to make sure the DEX can function with 0.1% swap charges.
On high of those demanding necessities, it was additionally important that the oracle technology be able to sustaining extremely constant uptime, even in unstable market situations. As an business chief in constructing decentralized oracle infrastructure, Chainlink was a pure match for supporting this custom-made resolution.
Chainlink has been operational for 2+ years even throughout even probably the most intense situations, together with durations of excessive volatility and community congestion. Presently, Chainlink helps over 600 Value Feeds throughout a variety of blockchains, and helps safe tens of billions of {dollars} in on-chain worth.
Powering superior oracles with Chainlink
So far, Chainlink has supported infrastructure and knowledge feeds which might be maintained by a decentralized community of nodes run by skilled DevOps with a purpose to present customers with a dependable knowledge 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 working 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 include a spread of on-chain knowledge 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 knowledge of WOO Community, it’s doable to create custom-made oracles for WOOFi primarily based on the institutional knowledge 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 supply dependable value feeds throughout a variety of cryptocurrencies, together with the WOO token.
