• Chainlink will be used by WOO Network to launch customized institutional oracles

  • WOO Network announced today that WOOFi, a new capital-efficient DEX powered by institutional hedging and market-making techniques, will be used in conjunction with Chainlink to create institutional-ready market data oracles.

    Since the Spring of 2021, the WOOFi Swap proof of concept on BSC and Polygon has traded nearly $4 billion in volume, demonstrating the effectiveness of the Synthetic Proactive Market Making algorithm (sPMM).

    The requirement for highly dependable market data

    In order to replicate a CeFi order book on-chain, the DEX relies on highly granular market data from the WOO Network being pushed frequently into the blockchain.

    Unlike other market data oracles that send an update when the price deviates by a predetermined amount from the previous price, WOOFi required additional parameters such as mid-price, spread, and a liquidity coefficient. WOOFi also requires that the Oracle be updated more frequently in order for the DEX to operate with only 0.1 percent swap fees.

    In addition to these stringent requirements, it was critical that the Oracle technology maintain highly consistent uptime, even in volatile market conditions, and the Chainlink proved to be a natural fit for supporting this customized solution.

    The Chainlink Network has been operational for more than two years, with exceptional uptime and resilience even under the most extreme conditions, such as periods of high volatility and network congestion.

    It currently supports over 600 price feeds across multiple blockchains, securing tens of billions of dollars in on-chain value for leading DeFi and CeFi projects such as Aave, Celsius, Compound, and others.

    Chainlink is used to power advanced oracles.

    In order to provide users with a reliable data feed, Chainlink has supported infrastructure and data feeds that are carefully maintained by a decentralized network of nodes run by professional DevOps.

    These initial decentralized oracle networks (DONs) represent the start of a much larger vision of the Chainlink Network, in which any number of DONs can run concurrently and independently of one another, each with its own custom design patterns, external connections, and security configurations.

    WOO Network is leveraging Chainlink infrastructure to create its own independent DONs, which include on-chain data feeds and trading parameters derived from the WOO network itself.

    It is possible to create customized oracles for WOOFi based on institutional data and liquidity provisioning strategies of WOO network by combining the experience and technical expertise of Chainlink oracles with the rich market data of WOO Network.

    WOOFi is just one example of the on-chain products that can be developed using Chainlink and advanced datasets to benefit DeFi users by delivering institutional-grade liquidity-providing strategies that provide users with low fees, deep liquidity, and competitive prices.

    WOO Network will collaborate with Chainlink in the future to make these market pricing oracles available to third-party decentralized trading platforms. These platforms may use Oracle pricing to provide consistent price feeds for a variety of cryptocurrencies, including the WOO Token.

    We have great confidence in using Chainlink infrastructure to support customized market data oracles for our internal operations and select partners because of Chainlink’s dependable node operators and robust monitoring systems.

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