WOO Network, a cryptocurrency trading platform, today announced WOOFi, a new capital efficient DEX powered by institutional hedging and market making techniques. As of Spring 2021, the WOOFi Swap proof of concept on BSC and Polygon has traded nearly $ 4 billion in volume, demonstrating the effectiveness of the 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 frequently into the blockchain in order to replicate a CeFi order book on the chain.
Unlike other oracles that push an update after the price deviates by a set amount from the previous price, WOOFi needed additional parameters including average price, spread, and a liquidity coefficient. WOOFi also requires the Oracle to be updated more often to ensure the DEX can work with 0.1% swap fees.
In addition to these high demands, it was also essential that the oracle technology be able to maintain very constant availability, even in volatile market conditions. As an industry leader in building decentralized Oracle infrastructures, Chain link was a natural fit to support this personalized solution.
Chainlink has been operational since More than 2 years, even under the most intense conditions, including periods of high volatility and network congestion. Currently, Chainlink supports over 600 price feeds across a number of blockchains and helps secure tens of billions of dollars in chain value.
Power advanced oracles with Chainlink
So far, Chainlink has supported the infrastructure and data flow which is maintained by a decentralized network of nodes managed by professional DevOps to provide users with reliable data flow.
These initial decentralized oracle networks (DONs) present the start of a much larger vision of the Chainlink network, where any number of DONs run simultaneously and independently of each other with their own custom design patterns, external connections and their security configurations.
The WOO network relies on the Chainlink infrastructure to create its own independent DONs, which consist of a range of on-chain data streams and trading parameters derived from the WOO network itself.
By combining the experience and technical expertise of Chainlink oracles with the rich market data of the WOO network, it is possible to create custom oracles for WOOFi based on the institutional data and liquidity supply strategies of the WOO network. .
WOOFi is just the first example of on-chain products that can be created using Chainlink and advanced datasets to benefit DeFi users by delivering institutional grade liquidity delivery strategies, providing users with low fees, high liquidity and competitive prices.
Going forward, WOO Network will work with Chainlink to make these market pricing oracles available to third party decentralized trading platforms. These platforms can use Oracle pricing to provide reliable price feeds on a wide range of cryptocurrencies, including the WOO token.
