Graviton Collaborates with Band Protocol to Increase Reliability of Oracle Sub-systems
Today, we announce a partnership with Band protocol to reinforce Graviton’s interchain oracle infrastructure.
During the past year, the founding team of Graviton has been focused on in-depth R&D in the field of inter-chain communication. As a result, we have released Gravity, an oracle technology that enables a sufficient level of decentralization in solving any oracle tasks. Nonetheless, we believe that redundancy in oracle-based components is crucial for improving the reliability and responsiveness of the entire system, therefore today we are pleased to announce a close collaboration with Band protocol as an independent oracle services’ provider for Graviton.
Band Protocol is a decentralized cross-chain data oracle that connects smart contracts with scalable real-time external data, providing the tools for developers to specify and connect to any external data source or API with custom aggregation methods. They are backed by world-class investors such as Sequoia Capital and the top cryptocurrency exchange, Binance.
Oracles are essential for enabling data transfers from the outside world to a blockchain network, or between blockchain networks. They are a crucial element for applications in the field of decentralized finance, and in order to be deemed safe, oracles must possess a high level of stability and security.
In Graviton, multiple systems rely on interchain oracle communication. As soon as an event happens on a smart contract that belongs to the Graviton infrastructure, it should be registered by oracles and transmitted to one of the farm smart contracts on Fantom. The different kinds of required oracle integrations can be broken down into three categories: oracles for treasury farming, oracles for LP farming, and oracles for price feeds.
Oracles for Treasury farming
Graviton uses a novel DAO-inspired concept called Treasury farming that manages the initial distribution of GTON, the governance token. Treasury backers are offered to deposit a stablecoin into the treasury by making a transfer to a multisig contract that uses Gnosis Safe. As soon as the event of a deposit happens, it is registered by Band Protocol oracles and transmitted to the farm smart contract on the Fantom blockchain.
The principles behind Graviton’s interchain farming are described in a previous article: https://medium.com/graviton-one/interchain-treasury-farming-f1747cddedcb
To broadcast the updates in deposits onto the impacts on the Treasury farming contract, Graviton needs to establish and maintain stable inter-chain communication between the Treasury contract on Ethereum and the farm smart contract on Fantom. At this moment, this task is being solved through Gravity extractors (source code). With the addition of Band protocol oracles, two systems will operate independently in parallel to supplement each other, thereby improving the overall performance and minimizing downtime.
Oracles for LP Farming
Graviton’s primary aim is to boost liquidity and hence the overall adoption of tokens wrapped in various chains, by offering a reward generation system for liquidity providers. Usually, in order to stimulate liquidity growth, additional incentives need to be put in place. If participants are provided with proper rewards for creating and staking WT LP on various AMM services, this inevitably leads to an increase in volume and exposure of wrapped assets in new ecosystems.
To find out more about wrapped tokens and their issues that are being solved by Graviton, we highly recommend reading this article from our blog: https://medium.com/graviton-one/liquidity-of-wrapped-tokens-explained-6d3bfba7ee73
Positioning itself as a blockchain- and bridge-agnostic system, Graviton aims to simultaneously integrate with a variety of ecosystems, including EVM chains such as Ethereum and BSC, non-EVM chains such as Solana and Waves, and layer-2 solutions such as Polygon, xDai and Optimism. In order to allow for LP farming on those chains, a separate set of Graviton smart contracts called LP LU (Liquidity Provision Lock-Unlock) contracts need to be deployed onto all the integrated blockchain networks. After a user receives LP tokens for providing liquidity on a certain blockchain network, they can lock those tokens on Graviton smart contracts using our user interface to receive additional yield distributed in GTON.
By using oracle systems such as Band Protocol, the information about lock events should be transmitted to the Graviton LP farm on Fantom which rebalances the allocation of the reward token. The rules of GTON allocation for LP farming can be modified through voting or manual management by the core contributors.
Price feeds
The concepts of mirror accounts and delegation gateways utilized by Graviton can allow Metamask/Ethereum users to effortlessly interact with other blockchain networks. This innovation is aimed at lowering blockchain fees and streamlining user experience. For a more detailed overview of the mirror account concept, please refer to this article on Gravity protocol blog: https://medium.com/gravity-protocol/using-an-ethereum-wallet-to-sign-transactions-on-waves-23509adf152
A mirror account is dynamically created by the system when the user attempts to interact with a blockchain that is non-native to the wallet they’re using. It requires a native token to be deposited in order to supply fees in a target blockchain, and thus an oracle price feed for token conversion. At this stage the mirror account system uses the concept of delegation gateways, made available through the Gravity network, however the integration of Band alongside the existing oracles will make the system more reliable overall.
In addition, the Band team will enter the project as one of the signers of multisig contracts on all chains, alongside representatives of 1Inch, Waves, BSC, and other prominent actors in the DeFi space. This close collaboration between Graviton and Band on multiple levels will allow for a more robust and secure flow of interchain data within Graviton.
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.
Website | Whitepaper | Telegram | Medium | Twitter | Reddit | Github
Graviton website: https://graviton.one/
Telegram chat: https://t.me/graviton_community
Twitter: https://twitter.com/OneGraviton
