At the core of decentralized finance (Defi) lies innovation, collaboration, and the pursuit of a more secure and reliable financial landscape. Today, we are thrilled to unveil the integration that marks a significant stride in the evolution of DeFi lending—Omni by Beta Finance's integration with Band oracle on the Ethereum Mainnet!
Omni by Beta Finance, a pioneering decentralized finance (DeFi) lending platform
The Omni protocol is a composable, dynamic, and safer money market capable of handling all collateral types and borrow types with zero fragmentation and maximal capital efficiency—the first of its kind.
Unveiling the Power of Band oracle
Enhanced Data Oracle Solution for Omni's Data Feed
Band Protocol's data oracle solution seamlessly integrates into Omni, bringing forth a new era of decentralized lending. Omni stands as the pioneering protocol to support $BAND as collateral on the Ethereum mainnet, while our $BAND data feed supports 11 crypto tokens and stablecoins, ensuring users have access to real-time, accurate, and comprehensive market data.
Tailored Customization for Optimal Performance
What sets Band oracle solution apart is its flexibility and responsiveness. Together with the Beta team, we have been working closely to fine-tune the parameters of the price feed oracle for Beta’s new type of money market with its unique risk tolerance characteristics. We initially set an aggressive price deviation of 0.3% for stablecoins and 0.5% for non-stablecoins. During the testing process, however, the Beta Finance team discovered that our price feed was updating too frequently. This resulted in an excessive number of update requests that didn't notably enhance the data feed's accuracy on some of the more volatile assets.
To address the problem and further optimize the gas expenditures, Band Protocol’s customizable oracle solution allows the Beta Finance team to tailor the oracle as follows:
$ETH, the least volatile non-stablecoin asset, was adjusted to 1% to reduce costs while maintaining real-time price accuracy.
$BETA, with higher volatility, was adjusted to 2%.
$SHIB, prone to frequent price fluctuations, was adjusted to 3%.
$MEME, the most volatile among them, was adjusted to 3.5%.
We will continue to work closely with the Beta Finance team to monitor and deliver the most appropriate price data on Beta Finance’s supported assets. This marks the beginning of our journey together to bring the next generation of lending protocol to the market.
Key Benefits of Band's Oracle Solution for Omni
1. Enhanced Accuracy for Large Caps and Stablecoins
For large caps and stablecoins with relatively low price fluctuations, Band oracle allows the Beta Finance team to optimize the update interval to increase real-time data accuracy. This ensures that the value of large-cap tokens and stablecoins on Omni accurately reflects their actual market value at all times.
2. Optimized Gas Fee for Small-Cap Token
In the case of small-cap tokens, known for their high volatility, the ability to choose appropriate price deviation % parameters becomes crucial. Band oracle’s optimization allows Omni to control gas costs effectively. The tailored feed accurately captures price swings without unnecessary update requests, balancing accuracy and efficiency.
We will be hosting an AMA on Twitter Space with the Beta Finance team on December 7th, 2023, from 9-10 AM UTC. Furthermore, the Beta Finance team is also planning to launch an educational tweet series, highlighting the advantages and reliability of Band oracle. This series will offer a closer look at how the Band Oracle functions within the Omni platform, providing users with valuable insights into the seamless integration of our cutting-edge technology.
Together with Beta Finance, we are not just revolutionizing DeFi lending; we are empowering users with secure, reliable, and innovative financial solutions. Stay tuned for more updates, insights, and exciting content from Band Protocol and Beta Finance!
Omni by Beta Finance
Omni by Beta Finance redefines DeFi lending with its unique dual risk pool and risk grade model. This innovation realizes personalized lending, giving lenders and borrowers enhanced control and flexible options for their risk and reward preferences. For a deeper dive into Omni's key features, visit https://www.betafinance.org/.
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: Linktree