ERG/USD oracle pool is running on Ergo Blockchain. In short, they are an abstraction above oracle pools which allows us to scale the benefits of oracle pools as much as we desire, at the cost of price and speed. This can be utilized to construct oracle datapoint hierarchies of confidence. In the extended UTXO model, we have a lot of flexibility and power available to build new protocols. Because of the eUTXO design and its rich programming language ErgoScript, oracle networks can be more decentralized. DeFi ecosystem suffered from Flash Loan attacks, caused by misinformation from centralized price oracles.Įrgo developed Oracle Pools to maintain a robust DeFi ecosystem. Not only in atomic swaps but also in more complex interactions such as lending/borrowing assets or dynamic market-making need the data feeds provided by oracles. Thus, oracles are the messengers of the crypto ecosystem. During a swap order in a decentralized exchange, a swap contract needs to call the data from various data sources to obtain market price. Normally, ETH has no info about the current market price. It connects off-chain data with the on-chain world. Oracles are the backbone of a decentralized financial system. For SigmaUSD, this scenario is not possible. As Emurgo states, "Black Thursday," when MakerDAO CDPs were triggered for liquidation due to volatility and then sold for $0 due to blockchain congestion that prevented others from bidding, demonstrated that a new design is needed. This design prohibits liquidations such as we saw in 2020 March crash. SigRSV collateral ratio is set to a minimum of a 400% ratio with SigUSD. It’s collateralized with its own native cryptocurrency reserves ERG using SigRSV as the trust component which gives SigUSD’s $1 value. Providing a truly decentralized finance experience. Launched in February, Ergo’s native stablecoin SigUSD is based on AgeUSD protocol to provide a robust Reserve/Mint contract. However, for a decentralized financial system, we need other means of fiat-pegged currencies. The first example of a stable coin, USDT, is backed by actual dollars held in banks. Until DAI, fiat custody services were provided by centralized services. ![]() A Stablecoin is the most primitive integration of cryptocurrencies with the off-chain world. That’s why investors often seek digital assets which are pegged to national currencies. Stablecoinīlockchain assets can be extremely volatile. To check out some smart contract deployments, see our GitHub repositories here and here. ![]() Ergo is also partnered with EMURGO, the commercial arm of Cardano, to improve research on blockchain and zero-knowledge ecosystems. The Proof of Work consensus algorithm and underlying UTxO model enable robust scalability and security. Ergo Blockchain is Layer 1 Protocol for powerful Decentralized Finance Contracts that builds advanced cryptographic features and radically new DeFi functionality on the rock-solid foundations laid by a decade of blockchain theory and development.
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