Umbrella Network Announces Partnership with BoringDAO
Umbrella Network is pleased to announce a partnership with BoringDAO, a decentralized asset bridge connecting different blockchains, to provide Umbrella’s decentralized oracle solution for less liquid cryptocurrency pairs.
TL;DR
- Umbrella Network, a community-owned Layer 2 Oracle solution for the DeFi market, announces partnership with BoringDAO, a decentralized blockchain bridge.
- Most DeFi applications face problems when pricing less liquid cryptocurrencies due to a lack of authentic pricing data.
- Current oracle services focus only on the top-performing assets, leaving the mid and tail of the market underrepresented.
- BoringDAO will utilize the Umbrella oracle to gather data for less liquid cryptocurrency pairs.
The rapid growth of the DeFi sector has exposed the pressing need for interoperability bridges that enable users to port liquidity from one blockchain to another. However, bridges alone aren’t enough to support a functioning DeFi system. Without the ability to accurately price assets, current DeFi applications risk significant losses due to pricing inefficiency.
BoringDAO’s mission is to expand the current DeFi landscape by connecting the Ethereum ecosystem to the broader crypto world. The protocol allows blockchain assets and their subsidiary tokens to be converted into wrapped ERC-20 tokens in a decentralized and safe way, ensuring low friction.
Major cryptocurrency pairs such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) come with an abundance of data and oracle support. However, less liquid cryptocurrencies often lack representation with larger oracle providers and are unfairly left out. Furthermore, cryptocurrencies that lack liquidity often experience extreme price swings that make it harder to establish a secure price.
This is where the Umbrella Network steps in. Utilizing a system of Merkle trees to anchor hundreds of data points onto a single Ethereum transaction, Umbrella’s oracle solution batches data and proofs so that it’s more inexpensive, scalable, and secure. This allows Umbrella to support a wider range of cryptocurrency price data including those in the middle and tail market.
The partnership with Umbrella will provide BoringDAO access to the oracle service for less liquid cryptocurrency pairs.
“We are excited to work with BoringDao through this partnership and look forward to providing them and the broader DeFi ecosystem at large with mid and long tail crypto asset data.
We believe DeFi needs more access to a broader diversity of reliable, low-cost data at scale, and this is a further step towards achieving that goal.” ~Sam Kim, Partner at Umbrella Network.
“This partnership will give BoringDAO access to fresh, secure, and scalable data across a broader spectrum of mid and long tail crypto assets. We look forward to continuing our mission to wrap virtually all blockchain assets and bringing that liquidity to the DeFi ecosystem.” ~Enki, BoringDAO Core Member.
About BoringDAO
BoringDAO is a decentralized bridge between Ethereum and other blockchain assets. A new-era crosschain powered by $BOR tokenomics, BoringDAO is an infrastructure building bridges between DeFi and the rest of the crypto industry. The protocol offers the opportunity to non-ERC20 assets to maximize their utility and create a yield-generating effect. For each blockchain asset, there will be an exclusive minting tunnel operating in the form of a decentralized autonomous organization (DAO) and performing bi-directional mapping between blockchain assets and ERC20 tokens.
About Umbrella Network
Umbrella Network is a community-owned, scalable, and cost-efficient oracle for the DeFi and blockchain community. Umbrella believes a community-owned Oracle is not only possible but essential to creating a truly decentralized financial system. In addition, Umbrella’s Layer 2 technology utilizes the latest advances in Merkle Tree technology to write multiple data points on a single on-chain transaction. And thus, it allows for the secure, inexpensive, and accurate batching of data to smart contracts.
For any inquiries, please contact us at marketing@umb.network
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