This article was first published on The Blueprint by Bluzelle - Medium
Swingby is launching their Chaos-Mainnet on December 28th and they will be using Bluzelle Price Oracles to help secure it. Swingby, the leading cross-chain swap protocol will soon bridge the gap between the Bitcoin and Ethereum chain by allowing users to effortlessly move their Bitcoins into WBTC without the need of a trusted party. Their implementation of Bluzelle price oracles will enable the bridge to remain secure and stable by allowing for additional risk management mechanisms such as asset over-staking and price unpegging to be integrated.
Swingby’s Skybridge is a decentralized protocol for moving assets between blockchains like the Bitcoin network, Ethereum, and Binance Chain. Their first bridge will allow for the $350b market cap asset, Bitcoin to be bridge into the $14.5b DeFi ecosystem. After a successful launch of the Bitcoin to Ethereum bridge, the team wants to continue connecting other chains together, creating an open cryptocurrency ecosystem.
In late November, Swingby published its SWIP-019 proposal, which explains in detail how oracle services will be used to ensure the security of the Skybridge network. This article defined two key risks and explained how data from an oracle service like Bluzelle could be used in a set of safety mechanisms to prevent against them:
- Risk prevention 1 — over-staking. To keep the Skybridge secure, the staked value of assets must always be inferior or equal to half of the total value of the network bond.
Proof-of-custody oracles allow anyone to properly assess the value of both bonded assets and the value of staked assets in the protocol, reinforcing the safety of the Skybridge node network.
- Risk prevention 2 — price differential between bridged assets. If conditions were not met, the network would be paused if there were a significant price delta inconsistency between two bridged assets. Thanks to price oracles, it becomes possible to detect ...
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The Blueprint by Bluzelle - Medium