Polkadot DeFi developers may soon get a new oracle provider with historic data
Distributed storage project Bluzelle will be collaborating with the Web3 Foundation to bring its oracle system for use in the Polkadot decentralized finance ecosystem.
The project formally announced on Sept. 15 that it would integrate its services with the Polkadot network, specifically its price oracle solution that could be used by DeFi projects building on the network.
Bluzelle is a distributed database system featuring a set of validators committing their stake to ensure the validity of the data and associated changes. The project has recently turned to the oracle space, using its database core to provide additional functionality over existing solutions like Chainlink (LINK) or Band Protocol.
The team says that its solution includes historical data that can be requested on-chain and used to perform statistical analysis on prices. This can help make markets and their price data more resilient to manipulation, as smart contracts can use the historical data as a sanity check on current prices.
Bluzelle runs on a blockchain built on Cosmos, with a claimed 10,000 transaction per second throughput, which it says makes it cheaper than competing solutions built on Ethereum.
Bluzelle CEO Pavel Bains told Cointelegraph that the consensus infrastructure is remaining on Cosmos. The Polkadot collaboration will involve building “a bridge to Polkadot as part of their select builders [program],” Bains said.
Bluzelle’s databases and oracles would be made available to all projects building on Polkadot’s Substrate framework, he added.
Nevertheless, the integration is still in a preliminary phase, Bains noted, “At this time there is not anything built to show. It’s early stages. We are working with a number of DOT projects already."
The integration comes as Polkadot keeps pushing heavily for building DeFi infrastructure on its chain. Bluzelle would come as an additional oracle provider as Chainlink was previously adapted to Polkadot by the Parity team.
Polkadot is already seeing several DeFi projects from other chains setting up shop, while new concepts like liquid staking are being tested on Polkadot first.
Nevertheless, some DeFi experts argue that the success of Polkadot DeFi relies on creating bridges to Ethereum liquidity. Cointelegraph previously reported of one such bridge initiative spearheaded by Snowfork.
Polkadot maintains an interoperability-centric vision that encourages bridges to other blockchains, and some of that can be seen in the decision to collaborate with Bluzelle — a project built on what is arguably Polkadot’s closest competitor, Cosmos.