We’re excited to announce that Wootrade will be giving institutions and professional traders an option to verify their trading histories on various blockchains using Chainlink’s oracle technology. Wootrade’s institutional clients, made up of quantitative and high-frequency traders, asset managers, and professional trading teams will be able to use Chainlink to cryptographically verify that their transaction history is accurate and complete, which can then be used to support new on-chain financial products like tokenized trading strategies.
Accessing DeFi Through Chainlink
Wootrade is base layer infrastructure for cryptocurrency exchanges and platforms, providing clients an easily accessible deep pool of liquidity sourced from the largest exchanges and from Kronos’ HFT proprietary trading. We utilize advanced crossing and routing methods that provide ease of access and superior trade execution to select exchanges. Already backed and used by many large exchanges and hedge funds, such as BitMax, Three Arrows Capital, and Gate.io, Wootrade generates a multitude of valuable datasets like order books, spreads, withdrawals, historic trades, current holdings, settlement history, spot prices, and more.
Given the proliferation and growth of DeFi as a parallel financial ecosystem, we see an increased uptick in the types of financial products that smart contract developers are building, moving beyond simple futures and options and into more exotic derivatives and advanced trading strategies. One of the most interesting areas to us is traders being able to prove their success at generating profits by putting their trade history on-chain. This removes any trust issues around whether or not the trader is actually successful. A trader’s track records and trading strategies can then be tokenized via synthetic assets, providing investors with a more diversified way to invest in crypto, akin to putting an ETF on-chain.
In order to create such an on-chain product, as well as various other DeFi instruments, we need a secure and reliable way of delivering our data on-chain. Since smart contracts cannot natively make API calls to external systems, we require the use of a blockchain oracle to make our off-chain APIs available on the blockchain (on-chain).
Oracles are middleware that retrieve external data on behalf of the smart contract, attest to its accuracy (through digital signatures), aggregate it (when using multiple sources/nodes), and broadcast it onto the blockchain so smart contracts can use the data in their execution. Oracles are critical to connecting the existing data and API infrastructure to various blockchain networks.
Seeing its rapid adoption as the most widely used oracle solution in the market, we identified the Chainlink Network as presenting the best opportunity to provide verified data for the smart contract economy and support a more advanced set of DeFi products. Some of the key features available to us on the Chainlink Network, which we did not find on other oracle solutions, include:
- Data Signing — Chainlink nodes use a private key to cryptographically sign every piece of data they post on-chain, allowing us to provide clear proof that the data originated from our API.
- Blockchain Agnostic — Chainlink nodes can integrate with any blockchain, providing us with a single framework to give users the option to monetize data to all blockchains that exist both now and in the future.
- Large Addressable Market — The Chainlink Network is the most widely used oracle solution, presenting us with a large and growing market of potential users that include both large and small DeFi projects.
- Time-Tested Infrastructure — Chainlink is thoroughly audited open-source software that collectively secures billions of dollars in value on mainnet, definitively proving its ability to protect and trigger the movement of real economic value.
These are just a few of the many reasons why we are confident in the Chainlink Network, and we look forward to joining its growing ecosystem. We are at the early stages of architecting a new decentralized financial ecosystem, and through Chainlink we can now take an active role in it by supplying signed data directly to a variety of leading blockchains.
“DeFi is one the fastest growing and most innovative new markets in the world, pushing the boundaries of how we build and think about financial systems and monetary assets,” said Wootrade Co-CEO Jack Tan. “By joining the Chainlink Network, we now have the ability to participate directly in supplying one of its most important pieces of infrastructure, oracles, and the data they provide. Thus, we’re able to monetize the many valuable datasets actively being generated by our exchange and/or curated by our team.”
About the Chainlink Network:
The Chainlink Network is the most widely used and secure way to power universal smart contracts. With the Chainlink Network, developers can connect any blockchain with high-quality data sources from other blockchains as well as real world data. Managed by a global, decentralized community of hundreds of thousands of people, the Chainlink Network is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
The Chainlink Network is trusted to deliver definitive truth by hundreds of organizations to provide continuous, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
Wootrade aims to solve the pain points of shallow liquidity, high fees, and poor trading environments on the cryptocurrency market by offering sufficient trading depth for B2B clients such as exchanges, wallets, and trading institutions with zero fees. The Wootrade network has already been online for nearly one year and is providing service to more than 10 exchanges and trading institutions, including Gate.io, Hoo.com, MXC, Oneboat Capital, Genesis Block, and more. A total of over 65,000 end users have used its trading depth through the exchanges cooperating with Wootrade. Wootrade’s incubator, Kronos Research, has an established track record and processes between $1 billion and $2 billion dollars per day in trade volume.