The research-driven partnership brings together WOO Network’s high liquidity strategies and Chainlink’s (LINK/USD) reliable oracle technology to launch customized Chainlink oracles based on WOO’s market data, Invezz learned from a press release.
WOO announced WOOFi, a new capital efficient DEX powered by institutional hedging and market making techniques, on October 27. Its Swap PoC has traded nearly $4 billion in volume since this spring, showing how effective the Synthetic Proactive Market Making (sPMM) market making algorithm can be.
Fulfilling demand for reliable market data
The DEX uses WOO’s highly-granular market data to replicate a CeFi order book on-chain. WOOFi requires additional parameters including spread, mid-price, and a liquidity coefficient, unlike other market data oracles that don’t register an update until after a price deviation. To make sure the DEX can maintain 0.1% swap fees, the oracle has to be updated more often.
Chainlink is a natural choice as leader in oracle decentralization
Even in the most volatile market conditions, the most reliable oracle technology maintains highly consistent uptime. Chainlink was the natural choice to build this customized solution on as the undisputed industry leader in oracle decentralization.
Chainlink supports more than 600 Price Feeds across multiple blockchains. These help secure tens of billions of dollars in value for Compound (COMP/USD), Aave (AAVE/USD), and other leading projects.
The beginning of a larger LINK network vision
To guarantee a reliable feed, Chainlink has supported data feeds and infrastructure maintained by a decentralized node network, operated by professional DevOps.
These decentralized oracle networks (DONs) are only the beginning of a much bigger vision, where multiple DONs can run at once and independently of one another with their own external connections and custom design patterns.
WOO Network is using Chainlink infrastructure to develop its own independent DONs, which consist of a range of trading parameters and on-chain data feeds sourced from WOO network itself.
Providing deep liquidity, low fees, competitive prices
WOOFi is just the beginning of on-chain products that one can create using Chainlink and advanced datasets to deliver institutional-grade liquidity, low fees, and competitive prices. WOO Network and Chainlink will cooperate to make these market data oracles available to third parties, who can use the oracle’s pricing to deliver reliable price feeds.
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