One of Qoda’s goals is to make more crypto assets available for use in lending/borrowing, in addition to blue chip assets like USDC, ETH, and BTC. To achieve this, we need innovative oracle providers like DIA, specializing in the creation of reliable price oracles for long-tail assets.
What is an oracle in crypto?
Let’s start with a basic explanation of crypto oracles. According to Ethereum:
Oracles are data feeds that bring data from off the blockchain (off-chain) data sources and puts it on the blockchain (on-chain) for smart contracts to use. This is necessary because smart contracts running on Ethereum cannot access information stored outside the blockchain network.
In other words, oracles deliver off-chain data to blockchains for use by smart contracts (like Qoda). This data can vary from live prices for crypto, NFTs, stocks, and other traditional financial assets to sporting results and weather forecasts.
So, why does Qoda need oracles?
Oracles’ role in Qoda
All collateral assets supported by Qoda have a Collateral Factor. This is a number from 0–100% that represents the perceived market risk of the asset. Qoda’s smart contracts use this number to discount the value of collateral deposits from their latest oracle price to account for this risk. This enables the Qoda protocol to operate more conservatively, improving its credit-worthiness as users must be over-collateralized to initiate borrow positions in our markets.
Generally, large, liquid, safer assets have high collateral factors, while small, illiquid, riskier assets have low collateral factors.
Integration with DIA
DIA develops cross-chain oracles for Web3. They source market data from a broad array of on-chain and off-chain exchanges and other sources at a very granular level. Currently, DIA is capable of building fully transparent and customisable price feeds for more than 3000 tokens.
Qoda’s smart contracts now have native support for DIA oracles, giving us access to on-chain price data for this diverse group of assets. This ultimately benefits our users because they can deposit collateral, lend and borrow assets that are typically not available on other fixed-income DApps.
What is next? We will soon add support for a new collateral asset in Qonstant’s Moonbeam deployment that uses a DIA oracle. Stay tuned for the announcement.
For reference
Qoda Finance
The Qoda Ecosystem consists of partner applications working towards a shared vision of making great financial services accessible to everyone. These applications can operate on any blockchain network. Currently, Qoda operates the Qonstant protocol with the following features:
- On-Chain Orderbook
- Isolated Collateral-Tier vs Market-Tier Assets
- Fixed Interest Rate, Fixed Maturity Loans With Automatic Position Netting and Early Exit.
These features give users more control and flexibility over their crypto portfolio. Qoda’s users have the freedom to lend and borrow across a wide variety of assets fully on-chain.
Visit our website for more details: https://qoda.fi/
DIA
From Price Feeds to Random Number Generation, DIA’s product offerings cover all oracle needs a Web3 application might require. DIA allows the creation of price feeds for over 3,000+ tokens, 18,000+ NFT collections, 20,000+ traditional assets, Liquid Staked Tokens and more, with the ability to customize each feed for specific protocols and use cases.
With a unique architecture that aggregates raw trade data directly from 80+ sources, such as CEXs, DEXs and NFT marketplaces, DIA offers 100% source transparency and bespoke customization. Any data feed that is publicly accessible can be sourced, regardless of its listing conditions and trading volume — there is no dependency on third-party data providers.
This allows DIA feeds to be fully customized with regards to the mix of sources and methodologies, resulting in tailor-made, high-resilience feeds and thereby setting a new paradigm for blockchain oracles.
For more information visit DIA’s website.