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A new Cardano-based project is handling oracles a lot differently than Chainlink

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Cardano (ADA) is getting into data oracles ahead of the Goguen era that will add smart contract functionality, taking a different approach than Chainlink. The first oracles are being built in partnership with EMURGO, one of the companies in the Cardano ecosystem, and Ergo (ERG). The first two oracles are deployed on Ergo and provide price feeds for the two trading pairs: ADA/USD and ERG/USD.

The new model introduces Oracle Pools, which are capable of incentivizing good and disincentivizing bad behavior. Ergo’s core developer Alexander Chepurnoy told Cointelegraph that the idea involves major players in the DeFi ecosystem donating funds to the oracle pools that they find useful. Then, the data providers get compensated with the funds from the pool. 

The model also envisions data providers staking funds as collateral. If a data provider feeds low-quality data, his stake can get “slashed”. Unlike Chainlink, which introduced a LINK token as gas-like payment mechanism, the new model is cryptocurrency agnostic.

Rumors started peculating when Cardano founder Charles Hoskinson tweeted about talking to Chainalink’s co-founder Sergey Nazarov. Some were expecting an announcement to be made soon about Cardano integrating Chainlink’s oracles. However, thus far, these rumors have not materialized. Likely, Cardano is in no hurry as there is little use in oracles before the Goguen era. At the same, it allows it time to test oracle infrastructure developed in-house.





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A review of SushiSwap roll-outs

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Launched in August 2020 as a fork of the Uniswap decentralized exchange, SushiSwap briefly surpassed its competitor. Now ranking third behind Uniswap’s v3 and v2, the DEX rolls out numerous integrations with major networks beyond its native Ethereum blockchain to offer users a single entry point and lower fees. 

The SushiSwap protocol is one of the largest proponents of a multi-chain future in decentralized finance as the DEX is already live on Ethereum, Binance Smart Chain, Polygon, Avalanche and Fantom. Data by Covalent provides insight on SushiSwap across these five chains.

Data reveals the most popular chain by the number of swaps executed daily is Polygon, as the protocol usage skyrocketed in May. Polygon continues to set new records as it hosted 120,000 swaps on SushiSwap recently.

Left far behind, Ethereum ranked second as of June 2021 by daily swap count. Fantom and Avalanche tend to follow the same trend as Ethereum, although the gaps among the three have been widening since the active trading days in late May. Avalanche and Fantom even outstripped Ethereum by the number of transactions on May 19, when a market-wide liquidation frenzy occurred.

A closer look at daily swap volume shows a different story. The dominance of Ethereum in SushiSwap had been unshakable for a long time, with the peak of trading volume at almost $3 billion on May 21. However, Polygon overtook Ethereum by swap volume in June with a $420-million mark, which highlighted the rapid take-off of the layer-two scalability solutions. 

The reduction of transaction costs is the major driver behind the adoption of a multi-chain approach. SushiSwap has achieved this by offering options outside of Ethereum. Data on gas usage on Ethereum and other chains could not even be compared in one chart due to a dramatic difference in numbers.