Ocean Protocol Taps Balancer to Create a Marketplace for “Data Tokens”

Key Takeaways

  • Ocean Market is an AMM powered by Balancer that allows anybody to buy or sell tokens that represent ownership of a particular dataset.
  • This will enable widespread monetization of data and access to a broader range of information for interested parties.
  • Efficiently priced data on a censorship-resistant marketplace is a huge step forward for DeFi.

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While the market focuses on the plight of DeFi tokens, Balancer and Ocean Protocol have teamed up to build the sector’s first fair marketplace to buy and sell data. Ocean’s data tokens will be listable on Balancer’s exchange, promising new utility for DeFi and crypto.

Ocean Protocol Launches Data Marketplaces

Automated market makers (AMMs) like Uniswap and Balancer allows anybody to provide liquidity and trade digital assets. These products primarily focus on financial tokens.

Ocean Protocol is building an open market that focuses on the exchange of data. Just as traders on Uniswap exchange, ETH for USDC, Ocean participants can trade data tokens.

For the uninitiated, each data token represents a claim on a particular range of data. Hypothetically, if XYZ token is linked to Binance’s financial data, whoever purchases XYZ will now have access to Binance’s core financials.

With the help of Balancer Labs, Ocean Protocol introduces Ocean Market, an AMM that allows anybody to buy and sell data.

SIMETRI small cap big gain

The pools will be bootstrapped with data tokens and the protocol’s native OCEAN token.

To purchase data, users must first buy OCEAN and then exchange it for the data token on Ocean Market. Just as one trades LEND for ETH on Uniswap or Balancer, users will be able to trade data tokens for OCEAN on the Ocean Market.

Ocean’s decision to use Balancer stems from the latter’s flexibility and reduced impermanent loss relative to Uniswap. An 80-20 pool of data tokens and OCEAN, for instance, would result in lower losses to price swings compared to a 50-50 Uniswap pool.

Fernando Martinelli,…

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