Woo Network to develop ‘custom’ oracle networks using Chainlink infrastructure

Crypto trading platform Woo Network is working with Chainlink to develop ‘Customised Institutional Market Data Oracles’ in a bid to provide consistent, accurate data for a new DEX.

The ‘research-driven initiative’ will combine WOO’s deep liquidity network with Chainlink’s oracle solutions to create customised oracles based on WOO’s market data to power its newly announced cross-chain DEX – ‘WOOFi Swap’.

The DEX aims to bring “the best possible pricing and lowest slippage” to traders on the platform and “best-in-class liquidity” to the DeFi space through a brand new on-chain market-making algorithm dubbed ‘Synthetic Proactive Market Making (sPMM)’. 

To ensure the market data provided to WOOFi remains regular, consistent and accurate, the Woo Network will implement their own ‘decentralised oracle network (DON)‘  by leveraging Chainlink’s proven oracle infrastructure.

Due to the high-capacity nature of Woo’s DEX model, the exchange noted that additional parameters and more regular updates are also needed in order to maintain network health and incentivise users through 0.1% swap fees.

To facilitate the large volumes of data, the ‘DON‘ will consist of a range of on-chain data feeds and trading parameters derived from WOO network’s available market data.

According to Woo, WOOFi Swap is “the first example of the on-chain products that can be created using Chainlink” and that “Chainlink was a natural fit for supporting this customised solution”.

The exchange also noted that “decentralised oracle networks (DONs) showcase the beginning of a much larger vision of the Chainlink Network”.

Speaking exclusively to CoinRivet, Ran Yi – Head of Ecosystem at WOO Network – spoke about the integration with Chainlink.

“We’re excited to collaborate with Chainlink to bring institutional data on-chain using the most robust oracle infrastructure in the industry,” he said.

“More advanced trading parameters like mid-price, spread and liquidity are essential for integrating advanced market-making techniques and supporting further growth in active liquidity provisioning strategies in DeFi.”

Woo will now continue to work with Chainlink to bring the array of market pricing oracles available through a ‘DON’ to third-party decentralised trading platforms.