FinNexus Forms Strategic Partnership With Band Protocol To Power DeFi DApps, Tokenized Real-World Assets & Decentralized Options
Cooperation Opens Wandora’s Box of New Potential DeFi Assets
FinNexus has partnered with Band Protocol, a decentralized cross-chain data oracle that connects smart contracts with scalable real-time external data, as a base layer price oracle to power decentralized asset-backed tokens. Band Protocol is backed by world-class investors such as Sequoia and the top cryptocurrency exchange, Binance.
The backbone of any decentralized platform or application, including FinNexus, is a robust and secure oracle as it determines smart contract logic and behaviour. For example, a margin lending and loaning platform on Ethereum lost an estimated 2,388 ETH due to dependencies on a single oracle source that was manipulated. Additionally, the leading DeFi project MakerDAO, had their oracle/data provider updates congested in the Ethereum network, leaving millions in undercollateralized stablecoin (Dai).
Most oracle usage to date is through reference data where data or price feeds are updated every specific time interval. However, this is susceptible to delayed information especially when querying the price of assets in a volatile market as the update interval is unable to capture the fair market price without paying an unscalable amount of fees. The creation of tokenized assets is an extremely delicate process that requires minimal margin of error and highly accurate, real-time price feeds which are able to be provided by Band Protocol’s oracle solution.
Uniting both FinNexus & Band Protocol will enable truly decentralized and secure financial products to be created, bridging the gap between traditional and decentralized financial products.
Using Band Protocol To Connect FinNexus With The World In Real-Time
FinNexus chose to build on Wanchain since it allowed us to take advantage of the cross-chain assets from other chains which are natively available on Wanchain. While access to Wanchain’s cross-chain assets forms a vital building block in FinNexus’s strategy, it’s not enough for us to build our ultimate vision in a secure manner — a reliable real-time oracle must be integrated.
Band Protocol brings spot data on-demand from other blockchains and traditional finance on-chain, allowing FinNexus to build innovative financial products including options, index funds, insurance products, and expand into further asset support that depend on a robust price feed.
The graphic below shows how two different interoperable middleware layer solutions interact with infrastructure-layer blockchains like WAN, ETH and XRP. The genesis of the FinNexus project is to bring diverse real-world value on-chain. A truly decentralized oracle solution like Band Protocol is an essential part of that vision.
As such, Band Protocol will be implemented as the base layer oracle of FinNexus to facilitate the price querying of any traditional asset on-demand and in a decentralized, real-time, and efficient manner.
“The integration with Band Protocol will bring secure off-chain data to the FinNexus platform in real-time. As a platform and hybrid marketplace for decentralized/traditional financial products, Band is an ideal replacement for centralized data feeds and reference feeds which provide delayed price information. We’re excited to work with the Band Protocol team who are completely focused on building a highly advanced and flexible oracle solution that allows teams like ours to rapidly iterate.”
— Boris Yang, CEO of FinNexus
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The Integration Goes Live With Wandora Box
Wandora Box will be the first FinNexus product to take advantage of Band Protocol price data. The real time, decentralized price feed for WAN, BTC and ETH provided by Band will mitigate the risk of manipulation and any single points of failure to drastically improve the security of the application and also enable Wandora Box to scale into a wider range of different asset pairs and prediction game types.
Tokenized Assets & Options Protocols Up Next
This integration will also form a part of the essential building blocks for both the tokenized real-world assets products and the options products that are currently being designed by the FinNexus team. Basically, how it works is that the price of a basic currency (BTC, ETH, stablecoins, fiat exchange rates, etc.) or underlying assets (for example, when developeing enterprise solutions for tokenizing real-world assets) is pulled from oracle nodes and written into the oracle smart contract. Then another separate smart contract calculates the combined price of the portfolio of assets based on the pricing data from the oracle nodes. In the next step, both the basic price and the calculated price would be used to mint different tokens.
These tokens could be derived from our Asset Distribution Protocol (ADP) cluster or the Decentralized Options Minting (DOM) protocol cluster we currently have under development. Reliable oracle pricing information will be instrumental across all the FNX protocols made available from our user interface. These smart contracts and functions will also be deployed on different chains. For now, plans are to support at least Wanchain, XRP and Ethereum. But we will not be limited to these chains.
We’re excited about collaborating with Soravis Srinawakoon, the CEO of Band Protocol. We’ve long been admirers of his project and look forward to integrating their protocols into our products!
Stay tuned for more news about FinNexus on our social media channels below. The FNX token will be available available for purchase on Bitrue starting May 11. More info here and here.
About Band Protocol
Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. Blockchains are great at immutable storage and deterministic, verifiable computations — however, they cannot securely access data available outside the blockchain networks. Band Protocol enables smart contract applications such as DeFi, prediction markets, and games to be built on-chain without relying on the single point of failure of a centralized oracle. Band Protocol is backed by a strong network of stakeholders including Sequoia Capital, one of the top venture capital firms in the world, and the leading cryptocurrency exchange, Binance.
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About FinNexus
FinNexus is building an open finance protocol to power hybrid marketplaces that trade both decentralized and traditional financial products. The FNX token will live on the Wanchain blockchain to take advantage of the most robust cross-chain capabilities currently available in the industry. The first products FinNexus will release are innovative tokenized assets with value based on real world cash flows that live on Wanchain and XRP Ledger. The second product to be released is a fully decentralized bitcoin options model
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