- Loopring has integrated Band Protocol oracles to provide price data for the decentralized exchange.
- Band Protocol generates prices by aggregating data from a number of verified sources like CoinGecko and Coinbase Pro.
- Band also recently integrated with the Binance Smart Chain.
Chainlink may be the king of DeFi oracles today, but that doesn’t mean competitors aren’t getting in on some integrations of their own.
Decentralized exchange Loopring announced today the integration of Band Protocol cross-chain oracles to provide price data for all crypto assets supported on the Loopring exchange. The move comes on the heels of Chainlink’s recent smart contract conference and the announcement that DeFi protocol Synthetix will use Chainlink oracles for its synthetic asset exchange.
In short: The battle for price oracle market share is heating up, as data providers race to integrate with some of the fastest-growing projects in crypto.
The decentralized Loopring exchange uses zkRollup technology to speed up Ethereum transactions, combining multiple trades into one transaction that is broadcast to the blockchain without revealing the contents of the transaction bundle.
Loopring launched in February 2020 and uses smart contracts to combine the secure, non-custodial aspects of a DEX like Uniswap or Balancer with the trading view and user experience akin to centralized exchanges like Binance or Coinbase Pro.
Band protocol allows users to design custom price oracles that draw from multiple verified data sources. Loopring oracles will draw crypto pricing data from providers including CoinGecko, Binance, Coinbase Pro, OKEx, and more. Fiat currency exchange rates will draw from sources like AlphaVantage, 1Forge, and Open Exchange Rate. Band Protocol oracles are designed to update every five minutes or any time there is a price change greater than 0.5%.
“Working with Band Protocol has allowed Loopring to bring trusted and verified market pricing data to our users who can now more efficiently safeguard transactions and identify slippage rates when transacting on Ethereum,” Loopring co-founder and COO Jay Zhou said.
Band Protocol launched on Ethereum after raising nearly $6 million in a Binance-based initial exchange offering. Band also received $3 million in VC funding from Sequoia Capital in 2019. Since then, the cross-chain oracle provider has picked up partnerships with Binance and South Korean blockchain project ICON.
Chainlink may be the most-hyped price data oracle for DeFi so far, but the project has more than a year’s head start on competitors like Band Protocol. As the oracle market matures, competition will only increase for the essential data services oracle providers offer.