Mastering the Core Technology
The Oracle is a mechanism to write information outside the blockchain into the blockchain itself. Its function is to write external information into the blockchain and complete the data connection and exchange process between the blockchain and the real world. It allows confirmed smart contracts to react to the external world which is full of uncertainties and is the only way for smart contracts to interact with the external world for data. Also, it acts as the interface between the blockchain and the real world for data interaction. Thus, it can be said that Oracle plays a decisive role in determining the success of a DeFi product.
Konomi’s current Oracle mainly works with several Oracle project corporations and makes use of the Oracles developed by them. After multiple rounds of testing on the testnet, the third-party Oracle machines have proven to be highly functional in terms of accuracy, timeliness, and security aspects, and are able to support the basic operation of Konomi Lend. However, with the expansion of Konomi’s project diversity, such as the upcoming P2P lending pool and other products, the current Oracle developed by the third-party corporations can no longer meet the demands of the Konomi team in terms of their product designs. Hence, the Konomi team decided to invest in the development of Prometheus, a multi-chain Oracle specially tailored for the Konomi platform. After several months of development, we are proud to announce that the product is now basically complete and is able to accurately carry out price feeding for Dot, BTC, Kono, and other regular currencies at an extraordinary speed.
Overall, the Konomi Oracle will obtain prices of currencies from multiple off-chain sources and then perform an integration and comparison process of the prices obtained to ensure the accuracy of the price feeding. The overall workflow is shown in the following diagram.
Users will submit the subscription operation to the chain through our UI. The off-chain service will read the subscription messages from the on-chain and send them to the cluster to create a new price feeding task, and then update the currency prices to the chain at regular intervals.
From the results of the tests carried out, Prometheus has the following significant advantages over the third-party Oracles currently in use.
(1) Since Prometheus was designed to be “tailor-made” for Konomi, it has significant advantages over current third-party Oracles in terms of UI design, extensibility, and compatibility.
(2) Prometheus adopts a different aggregation method from other third-party Oracle projects; thus, the currency price algorithm will be more accurate and time-effective. For example, we will adjust the price feeding cycle dynamically and report prices more frequently during times of high price volatility. At the same time, we will also collect historical data and perform outlier detection as a way to eliminate inaccurate prices.
(3) Given its unique design logic, it is easier for any external third party to access Prometheus, establishing a solid foundation for the decentralized P2P lending product that Konomi will launch in the future.
We believe that Prometheus has the potential to be adapted in different scenarios in the near future. As of now, Prometheus will first be applied to Konomi Lend and Konomi P2P Module products after several rounds of testing. Prometheus will enable Konomi P2P Module to obtain a variety of price feeds that are not available on third-party Oracles, greatly enhancing the application potential and value of the P2P Module.
All in all, the success of the Prometheus development will allow Konomi to obtain accurate prices for various tokens under any extreme market conditions and provide a good foundation for subsequent product development.
(Note: A detailed description of the Konomi P2P Module will be available soon)
About Konomi Network
Konomi is a full suite asset management solution for cross-chain crypto assets. Using Substrate as the development framework, the network aims to support more assets in the Polkadot ecosystem. Users could manage their crypto holding positions, trade assets, and earn interest through decentralized money market products. Konomi also issues its native network token in order to kick start liquidity and decentralized governance.
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