Band Protocol recently announced its partnership with cross-chain, decentralized finance hub Acala Network to launch the Open Oracle Gateway.
The Open Oracle Gateway is a decentralized, inclusive, and open price oracle service to decentralized finance ecosystems. Such ecosystems include Acala, Polkadot, Kayama, and others.
1/ 🚀 $BAND is excited to announce our collaboration with @AcalaNetwork, a cross-chain DeFi hub and stablecoin based on Substrate, to release the Open Oracle Gateway – an open oracle service for all @Polkadot, @KusamaNetwork, Acala ecosystems and beyond. https://t.co/HzFO0kG6Wu
— Band Protocol (@BandProtocol) December 1, 2020
Band Protocol will also provide real-time, safe, and decentralized price feeds to Acala and other blockchains that are connected to the Polkadot ecosystem. These price feeds are made available for collateral assets like BTC, ETH, and DOT.
Acala had always operated its own oracle network even before this partnership with Band Protocol. Its oracle network made use of multiple nodes to source off-chain data for operations that are on-chain. This data would then be used to evaluate liquidation risks and borrowing capacity. When Acala realized that they could not handle the issues relating to providing safe and reliable decentralized oracles alone, they decided to partner with Band Protocol.
Additionally, the partnership between Band Protocol and Acala Network will open doors for multiple oracles to provide solutions that will promote decentralization and maximum security.
Leveraging Multiple Oracle Solutions
For Band Protocol, leveraging multiple oracle solutions has been a major goal. These solutions will eliminate human errors, dependence on immutable smart contract code, and possible elements of centralization. By allowing Acala and other multiple parties to manage their own oracle networks and provide price feed services, the Open Oracle Gateway clearly shows Band Protocol’s commitment towards leveraging multiple oracle solutions.
Through a governance proposal, any oracle provider can be set up and be enacted by a governance proposal for a runtime upgrade. Such a provider will then have the ability to share off-chain data to Acala. In the Acala Network, the data feeds from the multiple parties will then be aggregated into one reliable price feed. Through a gateway, this price feed will be available for consumption.
In order to meet certain requirements, oracle providers like Band Protocol have the capacity to implement their own oracle pallets. Such requirements may include the validation of cross-chain data feeds. Besides, the integration of existing signed oracle APIs like the Coinbase Price Oracle can be done easily. In this instance, such integration can take place when a Coinbase Provider pallet is added and the signature is validated.
Price Feeds Also Available To dApps
The vision of the Open Oracle Gateway is to become a meta-network that is very flexible. As a meta-aggregator of oracle networks, the Gateway will motivate service providers to make decentralized and optimized services available. These services will also be able to meet the different needs of decentralized applications (dApps) without discrimination.
Such dApps have the choice to select a particular provider like Band Protocol to supply them price feeds. This choice is based on the preferences of the dApp. Alternatively, they can decide to get an aggregated price feed from multiple providers.
Another option for dApps is to get data individually from node operators and do the aggregation by themselves. Going further, they can also customize the aggregator to enable data consumers to choose any methods they want to use. Such a method can also be an average or a median price.
Provision of Quality of Service
Quality of Service will be provided to all the price feeds that will be posted to Acala, no matter the network provider they come from. Whenever transactions are submitted by the Operator, they are called operational transactions. Such transactions have priority and are guaranteed to be included in a block. This is done to avoid price feeds that are out-of-date and invalid as a result of congested networks and higher gas fees.
During transactions, when transaction fees are incurred, all valid feeds will be refunded. The result is that oracle feeds can be free, even as spam is prevented and integrity is assured. A transaction including a valid feed requires the signature of an approved Operator. Also, an Operator can only carry out one transaction in a single block.
As Band Protocol partners with Acala to develop and deploy the Open Oracle Gateway, both parties aim to fulfill their goal of uniting service providers and decentralized oracles. The result is also to improve the reliability and security of cross-chain DeFi.
Before now, Band Protocol announced a partnership with Coin98 Wallet, a renowned decentralized wallet.
As of the time of publication, Band Protocol (BAND) price was at $6.56 with a 24-hour trading volume of $62,906,718. BAND price has gone up 5% over the last 24 hours. It has a circulating supply of 22.5 million coins and a max supply of 100 million coins. The most current active market trading BAND is WhiteBIT.
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