Decentralized lending platform Constant to integrate Band tokens and Band Protocol’s decentralized data oracle
We are excited to announce that Band Protocol and Constant have signed a Memorandum of Understanding to integrate Band Protocol’s decentralized data oracles in future iteration and list BAND as a collateral asset on Constant’s peer-to-peer lending platform.
Constant is empowering peer-to-peer lending with blockchain technology to achieve a simple yet ambitious mission—create a platform for a borderless financial world through P2P technology. Unlike traditional P2P platforms that prey on vulnerable borrowers and expect investors to shoulder the risk — Constant protects both parties by securing returns for investors while also ensuring collateral protection for borrowers.
We’re thrilled to increase the usage of the BAND token by listing BAND on the Constant platform as a collateral asset to borrow USD. With a loan-to-value ratio of 66%, BAND holders can collateralize for example $150USD worth of BAND tokens to borrow $100USD. In turn, this will benefit passive BAND holders as they receive additional cash flow by taking a loan against their BAND tokens.
Furthermore, by implementing Band’s data oracles, Constant would effectively remove the central point of failure present in their current centralised price oracle model — thereby creating a more secure and decentralized platform for their users around the globe.
Without a reliable decentralized price oracle, Constant would have to rely on centralised price information which is susceptible to corruption for profit. For example, the price of ETH from a centralized provider could be manipulated to any value to trigger mass liquidations or collateral slips on the lending platform. This defeats the trustless nature of smart contract and decentralized applications and we are back to square one if dApps use centralized price feed.
Another issue with centralization is sandwich attacks — buying and selling in the same transaction to manipulate price data on-chain. Using an external oracle like Band can detect obvious attacks when prices on a decentralized price feed drop abruptly (i.e. 10%) and prevent the manipulated data from being used.
We are excited to assist and work closely with Constant to migrate and implement our secure oracle onto their DeFi protocol and dApp.
Headquartered in California, Constant is an alternative financial services platform designed to strip out the inefficiencies of the traditional banking industry and help people get more out of their money. Constant was founded by a team of scientists, economists, engineers, and designers, fully devoted to the mission of building simple, elegant financial tools for an increasingly interconnected world.
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About Band Protocol
Band Protocol is a data oracle platform building the data layer of the Web 3.0. It provides an accurate information feed from community-curated data providers that allows blockchains to access trusted data from outside of the network. This solution is particularly important for the execution of smart contracts, that are triggered by off-chain occurrences. It is open, decentralised and does not rely on third party services. Band Protocol makes dApp (decentralised applications) development simple and allows developers to tap into trusted data sources by integrating a basic line of code.