WOO Network Uses Chainlink for Custom Market Data on New DEX » CryptoNinjas – News Couple

WOO Network Uses Chainlink for Custom Market Data on New DEX » CryptoNinjas

Cryptocurrency trading platform WOO Network today announced WOOFi, a new capital-efficient DEX powered by institutional hedging and market-making techniques. Since the spring of 2021, the WOOFi Swap proof of concept has been traded on BSC and Polygon for nearly $4 billion in volume, demonstrating the effectiveness of a market-making algorithm known as Synthetic Proactive Market Making (sPMM).

The need for highly reliable market data

DEX relies on granular market data from the WOO network to be pushed repeatedly into the blockchain in order to replicate the CeFi order book on-chain.

Unlike other oracles that push the update after the price deviates from a specified amount from the previous price, WOOFi needed additional parameters including average price, spreads and liquidity coefficient. WOOFi also requires oracle to be updated often to ensure DEX runs with a 0.1% swap fee.

On top of these tough requirements, it was also necessary to have oracle technology Be able to maintain a very consistent uptime, even in volatile market conditions. As a leader in the Oracle decentralized infrastructure industry, chain link It was a natural fit to support this custom solution.

Chainlink has been launched for More than two years even in the most severe conditions, including periods of high volatility and network congestion. Currently, Chainlink supports more than 600 price feeds across a number of blockchains, helping to secure tens of billions of dollars in value on the chain.

Run advanced oracles with chainlink

So far, Chainlink has supported infrastructure and data feeds maintained by a decentralized network of nodes operated by professional DevOps to provide users with reliable data feeds.

Initial Decentralized Oracle Networks (DONs) offer the beginning of a much larger vision of the Chainlink network, where any number of DONs operate simultaneously and independently of each other with their own custom design patterns, external connections, and security configurations.

The WOO Network leverages Chainlink’s infrastructure to build its own independent DONs, which consist of a set of on-chain data feeds and trading parameters drawn from the WOO Network itself.

By combining the expertise and technical expertise of Chainlink oracles with the rich market data of the WOO network, it is possible to create a customized oracle for WOOFi based on the institutional data and liquidity provision strategies of the WOO network.

WOOFi is only the first example of an on-chain product that can be built using Chainlink and advanced datasets to benefit DeFi users by offering enterprise-grade liquidity strategies, offering users low fees, deep liquidity, and competitive pricing.

Going forward, WOO Network will work with Chainlink to make this market pricing oracle available to third-party decentralized trading platforms. These platforms may use Oracle Prices to provide reliable price feeds across a wide range of cryptocurrencies, including the WOO token.

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