Shadows Network, a hub for issuing, trading, lending, and borrowing synthetic assets, announced on Twitter that they have partnered up with Decentralized Information Asset (DIA).
“We’re pleased to share details of Shadows Network’s latest strategic partnership. DIA (Decentralized Information Asset) will be working with Shadows to implement oracles into the cross-chain synthetics protocol we’re developing.”
While the DIA partnership is primarily technical in nature, the Shadows Network will benefit from its industry connections and marketing know-how.
What Is DIA?
DIA is an open-source data platform that allows market actors to supply, share and use transparent, crowd-verified price data and oracles for DeFi applications. It uses crypto-economic incentives and the wisdom of the community to provide accurate data to various applications.
Why Is This Partnership Valuable For Shadows Network?
Shadows Network is completing its transition to Polkadot and will need to regularly pull in price feeds from Bitcoin Ethereum and the global currency markets. This is where DIA’s oracle services will be invaluable. Plus, Shadows Network may also leverage DIA industry connections for additional collaborations and partnerships further down the line.
The Importance of Oracles In Current DeFi Ecosystem
DeFi applications are reliant on trustable and scalable data feeds to build products that are reliable and accurate. As such, Oracles - aka systems that provide reliable data sourced from external systems - have become absolutely indispensable. E.g., Oracles are needed to create pools for synthetic assets whose price must be derived from external data points. So, without an oracle providing a decentralized source of truth for these on-chain synths will be impossible.
As Shadows Network puts it:
“DIA’s tamper-proof oracles are highly regarded within the blockchain space, and the caliber of their developer team is impeccable. Electing to pursue a technical partnership with DIA was thus one of the easiest decisions we’ve had to make...We look forward to working with DIA and utilizing their best-in-class oracle technology to obtain reliable price feeds that support synthetic swaps 24/7 with prices updated in real time.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.