Shade Protocol - expected to launch later this year - which specialized in privacy-preserving DeFi (decentralized finance) applications built on another Cosmos-based chain, Secret Network, is one likely Orion user, Xu said. Projects that need accurate prices have been finding workarounds, but they aren’t as reliable or trustworthy as a decentralized oracle network, where many participants checking multiple data sources need to reach consensus and are economically penalized if they screw up - a mechanism known as slashing.Ī rock-solid price feed is essential for borrowing and lending applications, like the one Umee is preparing to launch, and its platform will be the new oracle’s first “customer.” But the service will be available to others. Neither Chainlink - the largest oracle network on Ethereum - nor Band Protocol which, although based on the Cosmos SDK, is focusing on cross-chain use cases, has implemented a price oracle for Cosmos native assets.
“Cosmos has a lot of DeFi, but there’s not a single oracle that works for IBC tokens,” Umee CEO Brent Xu told Blockworks. Typically used to query price data, the oracle acts as an intermediary between the smart contract and off-chain sources - in the case of Umee’s Orion, initially about a half dozen exchanges such as Coinbase and Binance.
#Macro cosmos software#
The oracle, called Orion, will be provided by Umee blockchain’s validators which run software that will automatically pull pricing data from a set of centralized exchanges, plus decentralized exchange Osmosis.įor any smart contract to make use of data not running on its own blockchain, it needs to rely on a third-party service - an oracle. Umee, a Cosmos-based borrowing and lending platform, is weeks away from launching the first price oracle service for Cosmos’ inter-blockchain communication (IBC) protocol, the company announced Thursday. Cosmos has a broad range of development activity, but this basic piece of infrastructure is currently lacking.Price oracles are vital for borrowing and lending applications across DeFi.
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