Swingby Partners with Bluzelle For Price Oracle Services on Skybridge
Swingby is launching their Chaos-Mainnet on December 28th and they will be using Bluzelle Price Oracles to help secure it. Swingby, the leading cross-chain swap protocol will soon bridge the gap between the Bitcoin and Ethereum chain by allowing users to effortlessly move their Bitcoins into WBTC without the need of a trusted party. Their implementation of Bluzelle price oracles will enable the bridge to remain secure and stable by allowing for additional risk management mechanisms such as asset over-staking and price unpegging to be integrated.
Swingby’s Skybridge is a decentralized protocol for moving assets between blockchains like the Bitcoin network, Ethereum, and Binance Chain. Their first bridge will allow for the $350b market cap asset, Bitcoin to be bridge into the $14.5b DeFi ecosystem. After a successful launch of the Bitcoin to Ethereum bridge, the team wants to continue connecting other chains together, creating an open cryptocurrency ecosystem.
In late November, Swingby 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 like 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.
“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,” says Jacob Plaster, CEO of Swingby. Completion of integration of Bluzelle oracles into Swingby’s Bitcoin to Ethereum network is expected to be in early 2021.
“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.
** About Swingby 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