Band Protocol, a Sequoia-backed data oracle platform that allows decentralized applications (dApp) to tap into off-chain information, has integrated financial data from CoinGecko, DeSquare, Woodstock Fund, and one of the largest staking pools in China to their feed.
Data oracles are an essential layer that connects non-blockchain data to the underlying code that powers dApps. The new integrations come just a few weeks after the Band Protocol mainnet launch and releasing their first dApp, BitSwing.
“Without inputs from trusted off-chain data, dApp development will be limited and severely stunted. It is important that developers have access to the right tools to ensure that they’re building solutions that are relevant to the real world and integrating these four financial data providers brings us closer to making this happen.”
– Soravis Srinawakoon, Co-Founder and CEO of Band Protocol
Currently, the selection of data provider and onboarding process will be conducted by the Band Protocol team to ensure the initial reliability and stability of the oracle. To promote values of decentralization, all four sources are from different regions and industries to minimize the influence of geographical, political and industry-wide events.
Over the past two weeks, data providers have already contributed price information for the initial financial dataset (XFN), which includes BTC/USD and ETH/USD. Since then XFN has seen a 260% increase in market cap and more than 2,000 on-chain data queries have already been made by dApps.
The next integration phase will include financial data inputs such as price and volumes for other cryptocurrencies, stocks, and commodities. These processes will be decentralized in the coming months so that community members can pledge Band Protocol’s dataset, which are sub tokens generated by collateralizing $BAND for data providers that they trust to do the work.
The data providers and stakers who are responsible for curating high-quality data will then be rewarded with query fees for delivering data that users trust. Users who stake on these providers can already earn 30% APR (annual percentage rate) interest for securing Band Protocol data oracle.
Participants in the Band Protocol ecosystem will be able to either utilize data directly in their dApps, receive cash flow for providing quality data or stake collateral to help secure the data feeds.
“Decentralised data oracles will unlock tremendous value as the adoption of smart contracts and distributed ledger technologies ramps up. Band’s architecture, token utility and protocol incentives design is one of the strongest and well thought out we’ve seen in this space – it was a no brainer for Woodstock to align with their team,” said Himanshu Yadav, Managing Partner and CIO of Woodstock Fund.
“The opportunity to expand our business into the DeFi sector is logical, given the huge uptake we have seen in the space over the past year. Working with Band Protocol presents an intriguing new revenue stream that will utilize our already existing infrastructure. We are excited to support this initiative and will work closely with the team to improve the product,” said TM Lee, Co-Founder of CoinGecko
“Band Protocol’s sophisticated query layer for dApps is helping to eliminate centralized trust and points of failure in dApps. DeSquare is privileged to be integrated as a data partner to make the real-world application and adoption of blockchain technology a reality,” said Brian Yun, Managing Director of DeSquare.