Band Protocol announced last Monday, November 15, through its Twitter account, that Bandchain’s IBC oracle is now available on the main network and supports Injective Protocol in building the first fully decentralized derivatives exchange within cryptocurrencies.
“Today, we are proud to announce that we will support the Injection Protocol through the IBC Oracle module to help them build the first fully decentralized and cross-chain exchange target exchange derivative assets”, he said through an article posted on the platform Medium.
According to the company, Injective witnessed billions of dollars during its Solstice testnet period and launched its final canonical mainnet in November. The BandChainIBC Oracle module will allow Injective to easily request the data sources necessary to scale its fast-growing platform in an elegant way. Furthermore, this will mark the existence of the first fully decentralized derivatives markets within cryptocurrencies.
In his view, Injective users may use Band’s pricing sources to create unique markets of their choice, such as cryptopoints, indices, and other sophisticated derivatives such as perpetuals and futures. Since both Band and Injective are now IBC-enabled, users have the flexibility to create markets that are derived from sovereign blockchain networks like Cosmos and Terra.
Similarly, the company indicated that as more users and institutions begin to create markets in Injective using band pricing, the number of Oracle requests and fees generated for the Band Protocol will also increase exponentially.
Perfect interoperability, smooth application experience
The company highlighted that the Injective and the band protocol were conceived with interoperability and scalability in mind. As the first decentralized Layer 2 exchange, Injective shows a commitment to creating products that not only meet market needs but are also scalable. The oracle IBC feature in BandChain allows Injective to have full customization of the data request they need and receive the data natively. This means that when Injective demands a new data source, the protocol can simply send a new request and receive a data result that is guaranteed by the IBC design that the data is derived from the Bandchain without the need to request additional evidence.
Strengthening the strategic partnership
In his view, while this is a major milestone for the Injective and Band protocol in their shared mission of decentralization, it is a continuation of an ever-growing partnership.
“In the past, Band Protocol along with Injective, Terra and Mirror Protocol launched the world’s first decentralized equity futures trading for traditional synthetic stocks such as Tesla, Airbnb, GameStop, Twitter, Amazon and more. Soon after, Band Protocol partnered with Injective Protocol in a mutual node engagement program to further duplicate the shared mission of bringing secure DeFi products to a broader ecosystem”, he recalled.
The company said that with this latest integration of the use of the IBC infrastructure to receive data from Oracle decentralized in production, Band Protocol and Injective are setting a new standard of interoperability and security for future DEXs. Follow us to see how we will continue to collaborate to bring more values to the wider community in a decentralized and permissionless way.