Alpha Finance Turns to Chainlink, Band for Oracle Solutions

Key Takeaways

  • Alpha Finance is launching an oracle aggregator. It will initially use data from Band Protocol and Chainlink.
  • The Alpha Finance team said that the update would make their DeFi products more secure and reliable.
  • Launched in Oct. 2020, Alpha Finance has quickly become one of DeFi’s leading projects. Its Alpha Homora product contains over $1 billion in total value locked on Ethereum.

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DeFi Staple Alpha Finance is bringing together price feeds from multiple sources. 

Alpha Finance Merges Price Feeds

Alpha Finance is launching the Alpha Oracle Aggregator to pull in price feeds from multiple sources. It will launch with data from Band Protocol and Chainlink, with other sources like Uniswap V3’s TWAP and API3 due to be added sometime this year. 

Tascha Punyaneramitdee, the co-founder of Alpha Finance, explained that aggregating price feeds would make data more reliable and help improve Alpha Finance’s security. She said: 

“The Alpha Oracle Aggregator will greatly increase the reliability of data sourced, add flexibility and scalability for dApps, and increase security by limiting the effects of potential price manipulation and exploitation within the industry.” 

Data oracles are a fundamental jigsaw piece in the DeFi puzzle. They’re used to connect real-world data and APIs that power smart contracts. If a protocol needs to create a synthetic asset of gold, it may use an oracle to find the market price of gold. 

In the past, DeFi projects like Alpha Finance have tended to rely on only one oracle, which carries a risk if the source goes down or gets manipulated. Some DeFi applications have sought to resolve the problem by integrating multiple oracles from several blockchains, though that involves friction. Oracle failures have also contributed to multiple million-dollar losses in DeFi hacks over the last year.

By aggregating the data, Alpha Finance is hoping to improve the consistency and reliability of the data it…

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