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Enabling Confidential DeFi on Oasis Sapphire with Band Protocol’s Price Feeds

Since the beginning of our collaboration with the Oasis Foundation in 2022, the Total Value Secured by the Band Chain within the Oasis Network’s Sapphire runtime has nearly reached 2 million USD, with more than 700 requests monthly.

Enabling Confidential DeFi on Oasis Sapphire with Band Protocol’s Price Feeds
Band Protocol x Oasis Sapphire: Oracle Integration

Since the beginning of our collaboration with the Oasis Foundation in 2022, the Total Value Secured by the Band Chain within the Oasis Network’s Sapphire runtime has nearly reached 2 million USD, with more than 700 requests monthly. We are thrilled to announce that Band’s Price Feed is now accessible on Sapphire, the only confidential EVM in Web3, and is available on both testnet and mainnet for developers. This integration represents a significant milestone in the long-term collaboration between Band Protocol and Oasis, initiated in 2021, to leverage both platforms' strengths and enhance the DeFi ecosystem. Our journey with Oasis began with integrating the Band Protocol oracle solution on the Oasis Network, a key step towards bringing open finance to the mass market, as detailed in our integration announcement. Following this initial integration, we further solidified our collaboration through Band’s Oasis mainnet integration, bringing real-time, accurate, and decentralized price feeds to the Oasis ecosystem. This development underscores our commitment to fostering innovation and security within the DeFi space.

What is Oasis Sapphire?

Oasis Sapphire is the only confidential EVM in Web3. This network provides an advanced, privacy-centric environment specifically designed to foster the secure and customizable development and deployment of decentralized applications (dApps). Sapphire builds upon the core strengths of the Oasis Network—known for its scalability, privacy features, and robust ecosystem support for DeFi applications to introduce functionalities such as confidential smart contracts. These enable developers to create dApps that securely handle sensitive data, preserve user privacy, and offer innovative services within the broader Oasis ecosystem. The introduction of Oasis Sapphire as a strategic extension of the Oasis Network meets the increasing demand for privacy and security in the blockchain domain.

Transparent EVM vs Confidential EVM

Although Oasis Sapphire is an Ethereum Virtual Machine (EVM), it differentiates itself from other EVMs through its unique features focused on privacy and security. EVMs in Web3 are built to be fully transparent by default, but the Oasis Network thinks Web3 should be built differently. The table below shows the highlights of how EVM and confidential EVM are different:

(Source: https://docs.oasis.io/dapp/sapphire/guide/#sapphire-vs-ethereum)

Feature Confidential EVM EVM
Confidentiality and Security Offers enhanced confidentiality and security features, including private entropy generation and on-chain signatures. Standard security features without built-in mechanisms for enhanced confidentiality or private entropy generation.
Contract State’s Visibility Contract state is exclusively visible to the contract that wrote it, akin to all state variables being private. Full nodes cannot read the values stored within the contract's state. The contract state can be public or private, with visibility depending on the declaration. Full nodes can read the values of public state variables.
Data Transmission Transactions and calls are fully encrypted. Only the caller and the contract can see the data, limiting the utility of block explorers. Transactions and calls are not encrypted end-to-end by default, making data visible to any observer of the blockchain.
Address Derivation The 'from' address in calls is derived from a signature, allowing for authenticated getters without requiring on-chain transactions. Unsigned calls default to the zero address. The 'from' address is explicitly stated and determined by the transaction's origin, requiring transactions for any state change.
Use Case Examples A Hardware Security Module (HSM) contract that generates an Ethereum wallet and signs transactions secretly. A broad range of dApps with varying degrees of privacy and security, primarily public or with limited access controls.
Performance and Cost Similar to Emerald: it aims to be fast and cost-effective. It can vary, with gas fees influencing transaction costs and speed, depending on network congestion.

Unleashing the potential of Confidential EVM

Now that you understand Oasis Sapphire and its distinction from other EVMs, let’s discuss how the integration of Band Protocol helps unlock the potential of Confidential EVMs. Band Protocol bolsters the DeFi ecosystem on Oasis Sapphire by providing reliable, decentralized, and customizable price feed data. This collaboration is crucial for providing DeFi applications on Oasis Sapphire with the infrastructure needed to access accurate off-chain and cross-chain information, tailored to the platform's unique privacy-centric goals.

Integrating Band's Price Feeds unlocks possibilities for a range of DeFi applications on Oasis Sapphire, such as Confidential Lending, CDP stablecoins, and Synthetic assets, as well as Confidential Perpetual Contracts (Perps). Here is how these applications use Band’s Price Feed.

Synthetic Assets

  • Track the value of synthetic assets (e.g., stocks, commodities) linked to real-world assets.
  • Enable trading of synthetic assets with accurate price discovery and risk management.
  • Offer users exposure to various asset classes without directly holding them (privacy benefits).

Centralized Debt Position (CDP) Stablecoin

  • Maintain the peg of stablecoin to its underlying asset (e.g., USD) using price feeds.
  • Trigger automated adjustments in CDP collateralization ratios based on price movements.
  • Allow users to mint and redeem stablecoins privately while preserving asset value.

Confidential Perps

  • Set fair funding rates for perpetual contracts based on market interest rates and price feeds.
  • Facilitate margin trading with leverage while protecting user anonymity and trade details.
  • Enable sophisticated derivatives strategies in a secure and privacy-preserving environment.

Confidential Lending

  • Set accurate interest rates based on real-time market conditions.
  • Ensure fair liquidation thresholds for collateralized debt positions (CDPs).
  • Enable secure loan origination and repayment without compromising user privacy.

These applications leverage Band’s precise, real-time data along with Oasis Sapphire's privacy features, offering users enhanced privacy and security. This opens up new and challenging opportunities for developers to build innovative applications on Oasis Sapphire, supported by our ready-to-use oracle infrastructure.

There are more use cases apart from the mentioned examples. For more information, please visit: What You Can Build With the Industry’s First Confidential EVM — Sapphire

Band Protocol’s Impact on Oasis Sapphire Ecosystem

Band Protocol serves as a crucial oracle infrastructure for the Sapphire ParaTime, particularly for web3 and financial dApps seeking privacy. By providing reliable and secure price feeds, Band Protocol enables these applications to:

  • Execute complex financial operations with greater confidence and reduced risk. This is crucial for fostering trust in privacy-preserving DeFi solutions on Oasis Sapphire.
  • Unlock new possibilities for web3 applications. Imagine confidential NFT auctions with accurate price feeds or privacy-focused play-to-earn games with secure token valuations. Band facilitates innovative scenarios where price transparency is paramount.

Above all, the ultimate beneficiaries are retail users. Band's Price Feeds, coupled with Oasis Sapphire's confidentiality, create an environment that enables users to:

  • Engage in web3 and financial activities with enhanced privacy and security. Their data remains shielded, while they leverage the power of blockchain-based solutions confidently.
  • Make informed decisions based on accurate and reliable price information. This equips them with greater confidence to participate in DeFi, NFT markets, synthetic assets, and other web3 opportunities.

In essence, Band Protocol acts as a bridge that connects the world of financial markets with the secure and confidential world of Oasis Sapphire. This paves the way for innovative and user-centric applications, fostering broader web3 and blockchain adoption.

Calling Developers to Explore Oasis Sapphire Ecosystem!

We're inviting developers to tap into the full potential of the Oasis Sapphire ecosystem, enhanced by integration with Band Protocol. Whether you're inspired to enhance existing application models or explore innovative new ones, the Oasis Sapphire ecosystem offers a fertile ground for innovation, supported by Band's dynamic data feeds.

To empower your journey, a wealth of resources, developer guides, and community forums are here.

import interfaces/IStdReference.sol

contract DemoBulk {
    IStdReference public ref;

    constructor(IStdReference _ref) public {
        ref = _ref;
    }

    function demo_bulk() external view returns (IStdReference.ReferenceData[] memory) {
        return ref.getReferenceDataBulk(["BTC","ETH"], ["USD","BTC"]);
    }
}

Example: query the price of BTC/USD and ETH/BTC

Wrapping Up!

The integration of Band Protocol with the Oasis Network’s Sapphire protocol signifies a significant achievement in our collaborative efforts, establishing a foundation for the dApps within a secure and privacy-focused ecosystem. This is an exciting milestone where Band's Price Feeds will be integrated into confidential dApps launching on Oasis Sapphire, enhancing their security with reliable and timely data. We envision a surge in dApps adopting Band's oracle services to leverage the unique advantages offered by Oasis Sapphire, thereby enriching the ecosystem with diverse and innovative applications.

Looking ahead, our roadmap includes expanding the array of price feeds available to developers on Oasis Sapphire, ensuring that as the ecosystem grows and the demand for more varied data increases, we are well-positioned to meet these needs. This vision underscores our commitment to adaptability and growth, aiming to support the evolving landscape of DeFi with a flexible and responsive infrastructure. Through this strategic alliance, we are setting the stage for a future where the DeFi space is not only more inclusive and diverse but also more aligned with the privacy and security needs of its users, paving the way for unprecedented innovation in the sector.

About Oasis Network

The Oasis Network is the pioneering layer 1 blockchain designed to enable scalability and confidential computing. Oasis is home to Sapphire, the first confidential EVM that empowers Web3 developers to build dApps with Smart Privacy, both natively on Oasis or other EVM-based chains.More about Oasis Network: Website | Twitter | Discord | Telegram

About Band Protocol

Band Protocol is a cross-chain data oracle platform with the aspiration to build high-quality suites of web3 development products. The flagship oracle solution aggregates and connects real-world data and APIs to smart contracts, enabling smart contract applications such as DeFi, prediction markets, and games to be built on-chain without relying on the single point of failure of a centralized oracle.

More about Band Protocol: https://linktr.ee/bandprotocol

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