Oracle Partnership of Zoracles and DEUS finance
The history of blockchain technology is first and foremost a story of unprecedented collaboration. Whether in DeFi or other fields, the current rate of innovation and experimentation is only sustainable through leveraging strong partnerships.
DEUS finance DAO is now excited to announce our new partnership with Zoracles.
The role of oracles in DEUS
A key part of DEUS are index registrars, which mirror any type of verifiable asset. It is essentially a blockchain-based derivative. In order for this concept to function trustlessly, we make use of the so-called oracles. In our specific case, they are used to take one or several price sources, for example, the price of Ethereum (ETH) from Coingecko and Coinmarketcap, and supply them to the registrar.
Zoracles (in cooperation with Compound Oracles) will be one of the first external oracle providers for the DEUS platform. In short: registrar managers will in the future be able to select Zoracles’ oracles as a price-feed data provider for their registrar’s assets.
Why are independent oracles important?
Oracles are incentivized “truth-tellers”, providing external data to the blockchain. Having independent oracles is key for a decentralized future in which trust is replaced by transparency and proofs.
For example, if a registrar containing ETH is using the Zoracles oracle, you do not need to “trust” the DEUS platform to display the correct current price of a registrar asset, since you know it’s provided externally by Zoracles, without anyone being able to interfere. The Zero-Knowledge-Proof (ZKP) technology used by Zoracles is specifically designed to prevent man-in-the-middle attacks.
More context from the Zoracles’ developers (https://zoracles.com/position.pdf):
“Current oracle solutions have not addressed privacy in a meaningful way. There will be a barrier for adoption for enterprises unless strong anonymity is developed.
A well-understood vector for decentralized oracle networks is a man-in-the-middle attack. For enterprises or an adversary, they can monitor what data is sent by an oracle network. This is very similar to the early internet where most sites were HTTP. Zoracles expects our ZKP solutions to become the default privacy protocol (HTTPS) that is common for all website data transmission today.”
We were originally looking at projects like Chainlink, but they came with features which we considered irrelevant for DEUS. Since each feature comes with processing costs or fees, we believe an agile solution is best.
Furthermore, Zoracles is based on Open Oracles Technology. Oracle technology is still a novelty to many, and there are many promising projects. However, we believe that closed oracle services will slowly die out, as security and the user base will demand open-source.
To quote the above paper once more:
“This framework will provide a level of decentralization in acquiring data. Unlike Band/Chainlink, where nodes provide redundant data at a high cost, Zoracles data feeds will be free.
We carefully evaluated several options and selected the Open Oracle developed by Compound  as the most realistic long-term alternative to Chainlink. As shown below, this will allow us to securely gather and transmit price data for Bitcoin, Ethereum, and many other cryptocurrencies for smart contract execution.
The proof of work oracle design by Tellor or node operators of Chainlink, in our opinion, is overkill for retrieving price information that can easily be gathered in a Google search.”
DEUS is proud to be a part of this from the very beginning. Zero-knowledge oracles add another privacy layer to DEUS, that helps secures our protocol.
Stay tuned for future developments at DEUS. Our DEUS Swap static sale is live now, until 10,888,480 Blocks on the Ethereum chain are reached.