This new product was developed using data from two of the largest data oracles providers. Namely, Band Protocol and Chainlink. Its primary purpose is to confront obstacles that are preventing the expansion of the DeFi landscape. As such, it developed the Alpha Oracle Aggregator in a bid to ensure scalability, flexibility, and security.
Tascha Punyaneramitdee, co-founder of Alpha Finance Lab, commented:
“The speed at which the DeFi landscape is growing has impacted how Alpha Finance thinks about building and scaling our products. The Alpha Oracle Aggregator ensures the reliability and security of data sourced while increasing flexibility and scalability for the Alpha ecosystem.”
What issues will the Aggregator address?
More specifically, the new aggregator will allow Alpha Finance Lab to access verified data, aggregated from up to three data oracles for a single asset in one location. In addition, the product allows users to access data from different oracles for different assets.
Before, decentralized applications (dApps) needed to integrate with multiple oracles across multiple blockchains. A requirement that led the dApps to build and maintain several infrastructures at once. Alpha Finance’s new aggregator hopes to negate this requirement.
Soravis Srinawakoon, CEO and co-founder of Band Protocol, elaborated:
“The way we aggregate and supply data must adapt to facilitate growth and add a strategic edge with security to the decentralized projects that use it.”
Other issues include the lack of backup for dApps operating on a single chain, using a single data oracle. This leads to problems in the event of manipulation or unavailability. Furthermore, as the crypto space grows, it brings a variety of new tokens with it. This expansion causes difficulties for data oracles trying to cater to dApps’ requests to support more tokens.
Big year for Alpha Finance Lab
The aggregator is not the first big launch Alpha Finance Lab has made this year. Back in March, its leveraging protocol, Alpha Homora, announced the launch of staking opportunities and a new tokenomics model. In the reveal made on March 28, Alpha Finance said holders of the native ALPHA token could benefit from its product expansion. Specifically, ALPHA holders could stake tokens for fee-earning opportunities, and also unlock unique features.
At the time, reports indicated that this was one of the first times tokenomics were directly integrated with core underlying protocol usage.