Swingby Partners with Bluzelle For Price Oracle Services on Skybridge
Swingby has announced it will launch Chaos-Mainnet come December 28th, while utilizing the Bluzelle Price Oracles to endure that the system is safe.
There's a great chance that you may have come across Swingby, as it is currently one of the leaders in cross-chain swap protocol. It intends to close the ravine between the Bitcoin and Ethereum chain, and it does through permitting its users to easily move their Bitcoins into WBTC, while taking out the need for centralization or a third party.
Their usage of the Bluzelle price oracles ensures that the bridge will be safe and sturdy. This partnership will ensure that extra risk management systems like asset over-staking and price unpegging are incorporated into the project.
As a decentralized protocol that is involved in transferring digital assets from one blockchain to the other, Swingby’s Skybridge currently works with the Bitcoin network, Ethereum, and Binance Chain.
The first bridge that they intend to churn out will permit the $350b market cap asset which Bitcoin has to gain access to the $14.5b DeFi ecosystem.
It won't end in the Bitcoin to Ethereum bridge, as Skybridge intends to link other chains to one another, thereby ensuring that an open cryptocurrency ecosystem becomes a thing.
Recently, Swingby churned out its SWIP-019 proposal that talks at length about the way oracle services will be utilized to make sure that the Skybridge ecosystem is safe. Their published work stated that there are two major risks to this, and talked about the way the data from an oracle service such as Bluzelle is utilized as one of the numerous safety system to ensure that the risks are prevented.
Risk prevention 1: over-staking.
Skybridge can only be safe if the staked worth of the digital assets are always either half of the total value in the network or inferior to it.
The Proof-of-custody oracles permits everyone to easily rank the with of the bonded assets, as well as the worth of the staked assets currently in the protocol. This will go a long way to ensure that the Skybridge node network is highly safe.
Risk prevention 2: price differential between bridged assets.
Once the conditions are not there, this could lead to issues, as the network may end up being be paused once a major price delta inconsistency occurs between both bridged assets.
With the help of price oracles, it will be easy to find out any issue that may occur in the market prices of assets that will be bridged, thereby ensuring that the liquidity providers on Skybridge are shielded.
The Swingby team has stated that they are happy to work with the Bluzelle team to ensure that the oracle solutions offered by the latter are incorporated into their ecosystem. It's not news that Bluzelle has been around for a while in the cryptocurrency world for over three years. Swingby intends to utilize the experience that the counterpart has accessed in order to create a very reliable and safe bridge. It will go a long way to drive adoptability.