Swingby Partners with Bluzelle for Additional Oracle Services on Skybridge
Swingby, the cross-chain swapping protocol, partners with Bluzelle to further improve the risk management mechanics built into their new Bitcoin to Ethereum bridge launching December 28th.
Swingby’s Skybridge is a decentralized protocol for moving assets between blockchains like the Bitcoin network, Ethereum, and Binance Chain. On December 28th, the first bridge will go live to allow BTC holders to effortlessly move their bitcoins onto Ethereum through WBTC and vice versa. This highly anticipated launch will make DeFi far more accessible and bridge in a trustless way the $350b market cap asset into the $14.5b DeFi ecosystem.
In late November, the team published its SWIP-019 proposal, which explains in detail how oracle services will be used to ensure the security of the Skybridge network. This article defined two key risks and explained how data from an oracle service, such as Band or Bluzelle, could be used in a set of safety mechanisms to prevent against them:
- Risk prevention 1 — over-staking. To keep the Skybridge secure, the staked value of assets must always be inferior or equal to half of the total value of the network bond.
Proof-of-custody oracles allow anyone to properly assess the value of both bonded assets and the value of staked assets in the protocol, reinforcing the safety of the Skybridge node network.
- Risk prevention 2 — price differential between bridged assets. If conditions were not met, the network would be paused if there were a significant price delta inconsistency between two bridged assets. Thanks to price oracles, it becomes possible to detect any anomaly in the market prices of assets that are meant to be bridged, protecting liquidity providers on Skybridge.
Combining multiple oracle services
When integrating oracles services into a decentralized network, it becomes important to use multiple providers since relying on a single provider will introduce a central point of failure. Not only does this improve redundancy but it also means that the cost of manipulating ingested data feeds becomes far more expensive.
With this partnership, the Swingby Skybridge can implement both the Bluzelle and Band Protocol oracle service to maximize both the stability and security of the Skybridge network.
Jacob Plaster, Swingby CEO:
“We are very excited to begin working with the Bluzelle team to integrate their oracle solution, which is powered by the battle-tested BluzelleDB. Bluzelle has been a player in the cryptocurrency sphere since 2017, and we intend to harness that experience to build a more reliable and secure bridge that will help to make DeFi accessible to new users and platforms.”
Pavel Bains, Bluzelle CEO:
“We are excited to be part of Swingby’s journey to deepen cross-chain liquidity. They have proven their strength in technical capability with the launch of Skybridge, a Bitcoin-Ethereum bridge that unlocks the multi-billion opportunity in DeFi. We look forward to the successful integration of Bluzelle’s price oracle into Swingby and exploring more innovative use cases together in their future development,” says Pavel Bains, Bluzelle CEO.
Bluzelle aims to be the go-to data layer for Web 3.0 by providing a decentralized data network that is tamper-proof and has greater privacy, scalability and availability than traditional solutions. Powered by Cosmos, Bluzelle handles 10,000 TPS and is a delegated proof of stake. Bluzelle’s DeFi solutions are being developed to enhance Defi with historical price feeds, provide data analytics, 360-degree views, and more. As DeFi grows, Bluzelle’s infrastructure services play a big role.
Swingby is the warp-speed protocol for inter-blockchain swaps, allowing DeFi users to easily move assets between blockchains without the need for a trusted party.
Skybridge, Swingby’s core protocol, establishes trustless bridges between Bitcoin, Ethereum, Binance Chain, and other blockchains. It is secured by a network of node groups that execute fast-token swaps using multi-party computing and threshold signature technology.
Fully battle-tested in live high volume environments with over $14 billion transacted in its recent testnet, Skybridge’s decentralized technology unlocks a new world of DeFi capabilities, such as cross-chain liquidity pooling and DEX trading with a friendly user experience.
Swingby will launch its Ethereum Mainnet on December 28th, bringing Bitcoin to an ecosystem that already has more than $10 billion in capital locked up in DeFi contracts. The team plans to complete their integration of Bluzelle oracles into their Bitcoin to Ethereum network in 2021.