As blockchain projects expand, governance tokens are increasingly shaping the future of decentralized governance and finance. This article explores the dynamics, impact, and future potential of governance tokens, highlighting their growing influence on decentralized networks and beyond.

Understanding Governance Tokens

Governance tokens are a specific type of cryptocurrency designed to give holders decision-making power in decentralized protocols. Unlike Bitcoin or Ethereum, which primarily function as digital assets or mediums of exchange, governance tokens empower communities to participate directly in protocol governance. Token holders can vote on proposals, such as protocol upgrades, fee structures, or strategic partnerships.

For example, MakerDAO’s MKR token allows holders to vote on stability fees and collateral types for the DAI stablecoin, directly impacting the system’s monetary policy. Similarly, Uniswap’s UNI token enables its community to shape liquidity pools and protocol incentives, determining which initiatives receive funding. Governance tokens thus bridge the gap between decentralized systems and participatory decision-making, making token holders key stakeholders in the network.

In essence, governance tokens turn users into active participants, rather than passive investors. They encourage a sense of ownership and responsibility, incentivizing the community to think long-term about protocol sustainability.

Governance Tokens and Decentralized Decision-Making

Decentralized governance is the backbone of blockchain protocols seeking to minimize central authority. Governance tokens facilitate this by providing a quantifiable measure of influence: the more tokens a participant holds, the greater their voting power.

However, this creates potential risks of token concentration, where a few large holders—or “whales”—could dominate decision-making, undermining the principle of decentralization. To counteract this, some projects implement quadratic voting, which reduces the weight of large token holdings in proportion to the square of votes cast. This method encourages wider participation and reduces centralized influence, allowing smaller holders to have a meaningful voice in protocol decisions.

Key Functions of Governance Tokens in Decision-Making:

Through these mechanisms, governance tokens enable communities to self-regulate and evolve organically. The democratization of decision-making ensures that a protocol’s growth aligns with the collective interest of its stakeholders.

Economic Incentives and Value Capture

Governance tokens do more than confer voting rights—they also carry economic incentives. Token holders are often rewarded through staking, yield farming, or protocol revenue distribution. This creates a feedback loop where active governance participants benefit financially, aligning interests with protocol health and growth.

For instance, Compound’s COMP token incentivizes borrowing and lending while granting governance rights. Similarly, SushiSwap’s SUSHI token distributes a portion of trading fees to token holders, creating both a governance role and an income stream. These dual functions enhance engagement and encourage token holders to vote responsibly, because their financial well-being is intertwined with the protocol’s success.

Furthermore, governance tokens introduce a new dimension of value capture. By participating in governance, users can influence parameters that directly impact token economics, such as fee structures or reward mechanisms, which in turn affects the token’s market value. This adds a layer of strategic thinking for holders, who must consider both financial and governance outcomes.

Governance Tokens in Layered Ecosystems

As DeFi ecosystems grow, governance tokens increasingly interact across protocols, forming layered governance structures. For example, a governance token in one protocol may grant voting influence over another linked protocol or enable cross-protocol staking.

This interconnectivity creates governance networks, where multiple communities influence decision-making across platforms. Yearn Finance (YFI), for example, aggregates strategies from various DeFi protocols, with YFI token holders voting on treasury allocations and protocol integrations. These layered governance structures amplify the influence of governance tokens and underscore their evolving role as both financial and strategic instruments.

Moreover, the interconnectedness of governance across ecosystems promotes collaboration between protocols. Decisions in one protocol can cascade across others, emphasizing the importance of informed and coordinated participation. This interconnected governance model reflects a more sophisticated, multi-layered approach to decentralized management.

Regulatory Considerations and Legal Implications

The rise of governance tokens has not gone unnoticed by regulators. Since these tokens can confer financial benefits, questions arise regarding securities classification. In certain jurisdictions, governance tokens may be considered securities, requiring strict compliance with securities law, which can impact token distribution, trading, and liquidity.

Regulatory scrutiny also focuses on token distribution fairness, anti-money laundering (AML) compliance, and investor protection. Projects like MakerDAO have proactively explored legal frameworks to ensure token governance remains compliant and sustainable. Navigating this evolving regulatory landscape is crucial for long-term legitimacy, as failure to comply could lead to legal sanctions or the exclusion of certain participants from governance processes.

Ultimately, regulatory clarity is likely to strengthen the credibility of governance tokens, making them more attractive to institutional investors and larger communities seeking structured decision-making authority.

Expanding Influence Beyond DeFi

Governance tokens are poised to influence areas beyond traditional DeFi protocols. Their potential extends to NFT ecosystems, gaming, DAOs, and even social networks. Tokenized governance could redefine organizational management, allowing stakeholders to vote on creative decisions, community rules, or funding allocations.

Moreover, cross-chain governance is emerging as a key trend, enabling token holders to influence multiple blockchains from a single governance token. This convergence may transform governance tokens from niche DeFi tools into universal instruments of decentralized decision-making.

As adoption grows, governance tokens may evolve into broader digital civic tools, enabling users to participate in protocol, community, and even societal governance initiatives. In this sense, governance tokens represent not only a financial innovation but a shift toward more participatory, transparent, and accountable digital communities.

Table: Key Metrics of Leading Governance Tokens

Conclusion

Governance tokens are reshaping the landscape of decentralized finance by integrating decision-making power with economic incentives. From protocol upgrades and treasury allocations to cross-platform governance, these tokens empower communities and foster accountability. Challenges remain, including regulatory scrutiny and governance centralization risks.

As the ecosystem matures, governance tokens are likely to expand beyond DeFi, influencing NFTs, DAOs, and social networks. Their dual role as governance instruments and financial assets positions them at the core of blockchain innovation. By 2025 and beyond, understanding the dynamics and influence of governance tokens will be essential for anyone participating in or analyzing decentralized ecosystems.

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The Genesis of Regulatory Momentum

In mid-2025, the U.S. enacted the GENIUS Act, a landmark legislation mandating that stablecoins maintain a 1:1 backing with low-risk, high-liquidity assets, and undergo regular audits by independent third parties. The legislation is designed to increase transparency and bolster consumer confidence, particularly in the wake of prior market volatility that saw several algorithmic stablecoins fail. By establishing clear requirements for reserves, the GENIUS Act is expected to prevent future systemic risks and ensure that digital assets used in payments remain reliable.

Simultaneously, the European Union’s Markets in Crypto-Assets Regulation (MiCA) came into full effect, establishing a comprehensive framework for crypto-asset service providers. MiCA covers licensing, investor protection, AML compliance, and operational standards for stablecoins and utility tokens. While the regulation has been operational for six months, its implementation is still gradual, with secondary regulations continuously evolving to address emerging sectors like DeFi. MiCA’s phased approach allows platforms time to adapt to compliance requirements while encouraging innovation in tokenized financial products and decentralized lending platforms.

These regulatory milestones signal a global shift from reactive enforcement toward proactive engagement with digital finance, highlighting the increasing seriousness with which policymakers approach DeFi.

Regulatory Clarity and Its Impact on DeFi Platforms

Clear regulations have provided DeFi platforms with a more predictable operating environment, which in turn fosters innovation and investor confidence. In the U.S., the repeal of the IRS’s 2024 reporting requirements for DeFi platforms alleviated compliance burdens. This legislative change, signed into law in April 2025, means decentralized platforms are no longer classified as brokers and are exempt from certain tax reporting obligations, effectively reducing administrative costs and operational friction for emerging protocols.

Similarly, in the European Union, MiCA has led to the registration of several crypto-asset service providers, including traditional financial institutions like BBVA. This signals the mainstream adoption of digital assets by well-established financial actors, bridging the gap between legacy finance and decentralized systems. DeFi protocols now have greater clarity on licensing, custody, and AML expectations, which reduces legal uncertainty and allows teams to focus on product development, risk management, and strategic growth.

As a result, platforms that successfully integrate regulatory compliance are likely to gain competitive advantages by attracting institutional investors who require regulatory clarity before allocating capital to DeFi products.

Privacy vs. Compliance: The DeFi Privacy Paradox

Despite the advantages of regulatory clarity, a tension exists between privacy and compliance in DeFi. The GENIUS Act, with its emphasis on AML and sanctions compliance, has intensified discussions about the potential erosion of privacy principles foundational to decentralized systems. Privacy-conscious users fear that mandatory KYC (Know Your Customer) and transaction reporting requirements could compromise anonymity and deter participation in permissionless financial networks.

To address these concerns, privacy-preserving technologies such as zero-knowledge proofs (ZKPs) and decentralized identity (DID) systems have gained prominence. ZKPs allow users to prove compliance with regulatory requirements without revealing transaction details, while DID solutions enable users to maintain self-sovereign identities that preserve anonymity while satisfying KYC obligations. Integrating these technologies enables DeFi protocols to adhere to regulations while upholding their principles of censorship resistance, a crucial factor in sustaining the decentralized ethos and global appeal of the ecosystem.

Institutional Adoption and Market Growth

The regulatory evolution has catalyzed a wave of institutional interest in DeFi. In North America, DeFi Technologies reaffirmed its 2025 revenue guidance of USD 201.07 million, maintaining its position as a leading institutional asset manager of Solana-based DeFi assets. Institutional adoption is being fueled by the maturation of protocols, the emergence of secure infrastructure for custody and settlement, and the establishment of legal clarity that mitigates regulatory risk.

The U.S. Department of Justice’s 2025 policy shift has further reinforced investor confidence, transforming DeFi from a regulatory gray zone into a legally recognized ecosystem. Ethereum, with its deflationary tokenomics and established developer network, has emerged as the backbone of institutional participation. Retail investors, increasingly aware of security and compliance measures, are also contributing to market growth, highlighting a dual trend of mainstream adoption and technological maturation.

Institutional capital inflows are expected to accelerate product innovation, especially in tokenized debt, algorithmic stablecoins, and synthetic asset protocols. Furthermore, partnerships with legacy financial institutions allow DeFi platforms to scale beyond early adopters, offering regulated investment products to a broader audience without compromising decentralization principles.

Global Regulatory Divergence and Its Implications

While the U.S. and European Union have made significant strides, other jurisdictions display diverse approaches to DeFi regulation. Hong Kong, for instance, enacted the Stablecoins Bill in May 2025, emphasizing AML controls, risk management, and corporate governance for stablecoin issuers. In contrast, Singapore finalized its stablecoin regulatory framework in November 2023, granting approvals to issuers like Paxos Digital and StraitsX while maintaining an emphasis on reserve backing and operational transparency.

These divergent frameworks create operational complexities for DeFi platforms aiming to scale globally. Protocols must navigate varying compliance requirements, including differences in licensing, reporting obligations, and permissible financial instruments. Consequently, cross-border expansion requires sophisticated legal planning, dynamic compliance infrastructure, and continuous monitoring of regulatory updates.

Despite these challenges, regulatory divergence also offers opportunities for strategic market positioning. Platforms can leverage more favorable regulatory climates to pilot new products, attract international investors, and refine governance models before entering more heavily regulated regions.

Navigating the Regulatory Terrain

DeFi stands at a pivotal juncture, where regulatory clarity, technological advancement, and institutional interest converge. Platforms that proactively adapt to new rules while preserving core decentralization principles are likely to thrive. Key strategies for success include:

• Regulatory Adaptation: Continually monitoring updates and adjusting compliance frameworks to meet jurisdiction-specific requirements.
• Privacy-Enhancing Technologies: Implementing ZKPs, DIDs, and other cryptographic solutions to balance regulatory adherence with user anonymity.
• Policymaker Engagement: Participating in public consultations, advisory councils, and industry groups to influence favorable outcomes.
• Institutional Partnerships: Collaborating with banks and asset managers to expand market reach while offering compliant investment products.
• Community Education: Informing users about compliance, risk, and operational transparency to build trust and enhance adoption.

By embracing these strategies, DeFi platforms can navigate regulatory complexity while continuing to drive innovation, expand financial inclusion, and solidify their role in the global financial ecosystem.

Table: Comparative Overview of DeFi Regulations in Key Jurisdictions

The evolving regulatory landscape in 2025 underscores the importance of adaptability, innovation, and strategic compliance in DeFi. By aligning technological capabilities with regulatory expectations, DeFi platforms are well-positioned to expand globally, attract institutional investment, and redefine the future of finance.

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In recent years, the convergence of decentralized finance (DeFi) and sports betting has been making waves in the financial and gambling sectors alike. DeFi, characterized by its decentralized nature and use of blockchain technology, has brought about revolutionary changes in various industries. Similarly, the integration of DeFi into sports betting platforms has ushered in a new era of transparency, accessibility, and fairness in the world of online wagering.

The Rise of DeFi in Sports Betting

Traditional sports betting platforms often suffer from centralized control, lack of transparency, and issues related to payment processing. In contrast, DeFi-powered sports betting platforms leverage smart contracts to automate processes, ensuring that bets are executed without the need for intermediaries. This eliminates the risk of manipulation and ensures that payouts are processed efficiently and fairly.

Transparency and Fairness

One of the key advantages of integrating DeFi into sports betting is the transparency it offers. Smart contracts, which are self-executing agreements with the terms of the bet directly written into code, ensure that all transactions are visible on the blockchain. This transparency instills trust among bettors, as they can verify the integrity of the betting process themselves, thereby reducing the likelihood of fraud and corruption.

Furthermore, the decentralized nature of DeFi eliminates the need for third-party intermediaries, such as bookmakers, thereby reducing the risk of bias or manipulation. This ensures that bets are settled based solely on the outcome of the event, without any external influence.

Accessibility and Global Reach

Another significant benefit of DeFi-powered sports betting platforms is their accessibility. Traditional betting platforms often restrict access based on geographic location or require cumbersome verification processes. In contrast, DeFi platforms operate on a decentralized network, allowing users from anywhere in the world to participate without restrictions.

Moreover, DeFi platforms typically support a wide range of cryptocurrencies, providing users with more flexibility and anonymity compared to traditional fiat currencies. This not only expands the potential user base but also facilitates faster and cheaper transactions, regardless of geographical boundaries.

Challenges and Future Outlook

Despite the numerous benefits of DeFi in sports betting, there are still challenges that need to be addressed. Regulatory concerns, scalability issues, and the risk of smart contract vulnerabilities are among the key challenges facing the widespread adoption of DeFi in the sports betting industry.

However, with ongoing advancements in blockchain technology and increasing acceptance of cryptocurrencies, the future looks promising for DeFi-powered sports betting platforms. As regulatory frameworks evolve and scalability solutions are implemented, these platforms have the potential to disrupt the traditional sports betting industry and offer bettors a more transparent, accessible, and secure betting experience.

IN SUMMARY

The fusion of DeFi and sports betting represents a paradigm shift in the way we wager on sporting events. By leveraging the transparency, accessibility, and efficiency of blockchain technology, DeFi-powered sports betting platforms offer bettors a level playing field and greater control over their bets. While challenges remain, the potential benefits of this integration are undeniable, promising a future where sports betting is more transparent, accessible, and secure than ever before.

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ZooDAO’s innovative approach towards powering NFTs with utility allows them to go beyond the traditional reward mechanisms of yield farming to introduce an exciting new element of NFT ownership: NFT Battles.

Introducing NFT Battles

NFT Battles are the flagship feature of ZooDAO, enabling users to generate a yield from their digital assets through gamification.

Battles are divided into 5 stages, detailed below. Each stage of the flowchart indicates which individuals are involved — NFT Holders, or NFT Voters. In some stages, both NFT Holders and NFT Voters have a role to play. Here’s a full round-up of each of the 5 stages.

ZOO is Coming to Moonbeam’s Pulsar

StellaSwap is excited to launch ZooDAO’s farm on Pulsar, which has proven to be the most efficient AMM in DeFi.

StellaSwap is excited to launch ZooDAO’s farm on Pulsar, which has proven to be the most efficient AMM in DeFi. ZOO is the native token of ZooDAO that offers holders a broad range of utilities and benefits.

ZOO Launch Details

Given the success of Pulsar, StellaSwap will list ZOO on the first concentrated liquidity AMM on Polkadot. This ensures maximum capital efficiency and sufficient market depth for ZOO.

Here are the details for the upcoming ZOO farm launch

• Farm Launch: ZOO— FRAX
•  AMM: Pulsar
•  Bridge: Native ZooDAO Bridge (Powered by LayerZero)
•  Farm Type: Multi-Rewards
•  Reward Token: STELLA + ZOO
  
• Launch Date: 8 March

ZooDAO will launch their bridge in a few hours, so users can bridge their ZOO tokens from Ethereum to Moonbeam once it is live!

Additional Bonus: Stake xSTELLA for ZOO Airdrop!

In order to foster next-level NFT utility on Moonbeam, Stellaswap decided to add ZooDAO into its xSTELLA partner program that allows xSTELLA holders to get ZOO tokens for free!

The launch of the ZOO pool under xSTELLA will facilitate greater traction of ZOO across our community.

Here are more details:

• Bonus: ZOO Airdrop
• Venue: ZOO Pool in xSTELLA
• Qualifications: Stake xSTELLA into ZOO pool
• Duration: 2–3 Weeks

ABOUT Stellaswap

StellaSwap is a hybrid DEX that features a standard, stable and concentrated liquidity AMM to facilitate the most optimal price discovery for assets on Moonbeam.

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ABOUT ZooDAO

ZooDAO is the first community-governed platform to enable users to generate passive income from NFTs, through gamification. ZooDAO introduces exciting new elements to NFTs and DeFi via its innovative No-loss NFT Battles.

Website | Twitter 

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While in Web3, people usually use DID/ wallet address/ NFT avatar as their Web3 representatives. Those unique pieces of Digital identities supported in Bitizen Wallet may provide insights into users’ destinies and give hints on following the fortune calls.

Furthermore, Bitizen has implemented top-notch cryptographic Secure MPC protocols that efficiently remove single points of failure present in all traditional wallets — private keys and seed phrases.

In addition, the Bitizen wallet can integrate with any existing or future DApp on any blockchain via SDKs within a few minutes and make them accessible in the built-in Web3 Touch™ Browser and DApp Pass.

Furthermore, Bitizen is a keyless, seedless, non-custodial, censorship-resistant, privacy-safe, multi-chain Web3 wallet, designed to provide the highest level of security for new and experienced users. It is the ultimate wallet solution that meets all the needs of the crypto industry and is a true Web3 wallet – secure, simple and easy to use, censorship-resistant, privacy-safe, and compatible with all mainstream blockchains

One wallet for all chains & tokens

Bitizen supports all mainstream blockchains and tokens, including NFTs, making it an all-in-one Web3 wallet. It is also compatible with all Web3 Dapps, so the users can store any tokens and enjoy any Web3 services like DeFi, GameFi, as well as SocialFi, and  NFTs. Users can also easily and seamlessly switch between blockchains and immediately swap any tokens on any chains via a built-in DEX aggregator.

ABOUT Ascendant

Ascendant is a decentralized astrology ecosystem helping people to unlock the everyday magic within themselves and navigate the exciting Web3 world. Combining certified astrologers & AI, Ascendant offers a unique and insightful metaphysics experience.

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ABOUT Bitizen

Bitizen is a new generation MPC-based Web3 wallet with no private keys and no seed phrases, designed for the new wave of Web2. Bitizen provides the highest level of security while staying simple and easy to use. Other notable features are full privacy safety, censorship resistance, and multi-chain compatibility.

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Bitizen

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Beamswap is proud and excited to announce its strategic partnership with DAM Finance and GLMR Apes DAO. The Beamswap DEX was chosen by both partners’ communities to sustain the staking of the $GLMB — $d2o pair and deliver yields to token holders.

DAM Finance is a decentralized liquidity solution for seamless value transfer across blockchains. DAM’s decentralized infrastructure enables a scalable flow of assets between places. It makes the liquidity surplus flows easily and fast from liquidity-rich into liquidity-deprived platforms. It does so through its first dapp, d2o.

Together with dReservoir and dGuardian, DAM Finance delivers a secure transfer of value between blockchains, starting with Ethereum and Polkadot, and protects against potentially catastrophic events during burn and mint events.

What is $d2o?

DAM Finance’s native stablecoin, $d2o, is an omnichain token pegged to USD $1 in value. It aids emerging networks to scale native liquidity so they can reduce reliance on traditional bridging solutions.

$d2o acts as a liquidity pipe as it delivers liquidity from highly liquid places to where it’s needed more. It can be minted on Ethereum and is backed by existing stablecoins, such as USDC, at a 1:1 rate. It supports the scalable moving of value between networks and is teleportable from Ethereum to Moonbeam. Besides, it’s secured in real-time to prevent potential exploits and unbacked minting.

What is GLMR Apes DAO?

In January 2022, GLMR Apes kicked off as the first-ever sold-out NFT collection on the Moonbeam Network. Soon after, the community of pixel art GLMR Apes established a DAO, the first on the Moonbeam Network, to nurture on-chain governance through a so-called apemocracy.

GLMR Apes holders can stake to earn GLMR Bananas ($GLMB), vote with their NFTs, or play to earn in “The Great Escape,” a game that set a new milestone on Moonbeam as the first Web3 game on the network.

What is $GLMB?

$GLMB or GLMR Bananas is the native token of the GLMR Apes DAO and its ecosystem. It can only be produced through staking GLMR Apes NFTs and earned from the GLMR Jungle collection in the P2E game “The Great Escape”. This incentivizes holders to keep holding, participating in the ecosystem growth, and boosting the NFT’s value long-term.

Beamswap DEX launches $d2o — $GLMB yield farm

In late January, GLMR Apes DAO and DAM Finance joined forces to set up a $GLMB — $d2o pool with LP rewards in $GLMB. The partnership was established to benefit both sides. DAM Finance would profit from a higher utility for the $d2o stablecoin on the Moonbeam Network. On the other hand,  GLMR Apes will harness more liquidity for the $GLMB token in the native stablecoin.

About Beamswap

Beamswap is a DeFi hub built on the Moonbeam Network. It features a decentralized exchange (DEX) and an automated market maker (AMM). It gives users the freedom of adding liquidity, performing peer-to-peer transactions, swapping fungible tokens, and earning passive income from staking and yield farming.

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Orbiter One has officially integrated DIA’s transparent price oracle to list 10+ tokens and LSDs in its cross-chain, peer-to-peer lending protocol on Moonbeam. Being deployed on the Polkadot parachains Moonriver and Moonbeam, Orbiter One user can use the power of cross-chain EVM compatibility to get the most out of their lending experience.

Orbiter One is in the process of being audited, the results of which will be published shortly after launch. At launch, Orbiter One users are able to use over 14 assets for lending and borrowing on the Moonriver blockchain. All of which DIA will provide the pricing oracles. Special attention is given to Liquid Staking Derivatives (LSD). It plays a significant role in the Orbiter One ecosystem. It enables their users the total liquidity over their liquid-staked assets.

DIA is thrilled to announce a new collaboration with Orbiter One to provide the protocol with a price oracle for its decentralized lending solution on Moonriver and in the future on Moonbeam. The oracle will allow Orbiter One to list a variety of tokens as well as Liquid Staked Derivatives (LSDs) on its platform. It is based on high-quality, transparent asset price data. The oracle integration will boost the utility of the Dotsama native lending and borrowing platform.

“Without data platforms, lending protocols like Orbiter One simply cannot work. We are excited to be partnered with DIA in particular because they offer a very large variety of price feeds and they swiftly develop new ones per market demand.”— Yuriу Sigalov, Orbiter One CEO

Price Oracles for Any Asset Type

In order to support a selection of tokens and LSDs in its decentralized lending platform, Orbiter One requires accurate and reliable price information of those assets on-chain.

Hence, the oracle contains price feed two asset types:

• Market Price Feeds for Standard Tokens
  On the one hand, the deployed oracle is importing the market price information for regular digital assets. It includes wMOVR, WBTC, ETH, KSM, MAI, and more. The price feeds of these assets are calculated by leveraging granular, trade data, sourced from multiple markets and applying a Moving Average Price with Interquartile Range (MAIR) methodology.
• Fair-Value Price Feeds for Liquid Staked Derivatives
  On the other hand, the oracle also contains fair-value price feeds for LSDs kBTC and wstKSM. Since LSDs are infrequently traded in exchanges, utilizing the market value of the assets would be very risky and highly susceptible to market manipulations. Therefore, DIA determines the fair value of the assets by performing a collateral-ratio check on issuing protocol (i.e Lido or Interlay). This results in a risk-minimizing and transparent feed to integrate into lending protocols.

With liquid staking products rapidly growing, offering support for these types of assets in DeFi is necessary, and DIA as well as Orbiter One are focussing on bridging this gap. DIA is enabling users of the Orbiter One platform to use their LSD tokens as collateral in a transparent and safe manner. It will allow them to access the largest collateral variety on Dotsama.

“We are excited to help Orbiter One enable the largest collateral variety on the market by 2023. The space is in dire need of easy-to-use cross-chain interoperability, and Orbiter One fills that gap almost seamlessly. Together with their support for liquid-staked assets, we see a bright future for their platform. We are excited to help them enable their full potential!”— Michael Weber, DIA Association President 

Transparent and Fully Customizable Delivery

Moreover, DIA deployed a dedicated and tailor-made smart contract oracle to supply the most suitable price feeds for Orbiter One. Besides the feed requirements laid out above, the oracle was set up with a custom update trigger of a 0.5% deviation threshold for each asset.

Therefore, all these tailor-made configurations facilitate Orbiter One with the most suitable oracle for its needs. These requirements were transferred to DIA. By submitting a DIA Custom Delivery Request (CDR) via the DIA Forum which is publicly available to everyone.

ABOUT DIA

DIA is a multi-chain, end-to-end, open-source data and oracle platform for Web3. The DIA platform enables sourcing. It also enables the validation, and sharing of transparent and verified data feeds for traditional and digital financial applications. DIA’s institutional-grade data feeds cover digital asset prices, NFT floor prices, lending rates, FX rates, and more.

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DIA Core Team

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The Chainlink Automation Network is operated by the same pool of time-tested, provably reliable node operators that help secure tens of billions of dollars in DeFi, even during record levels of network congestion and extreme volatility. The proven infrastructure of Chainlink helps ensure that every rebalances are executed on time in a trust-minimized manner, giving users additional guarantees that it will function strictly as intended.

Currently, decentralized exchanges (DEXs) like Uniswap v3 lack sophisticated and decentralized market-making infrastructure, resulting in inefficiencies compared to centralized exchanges (CEXs). As a result, most trading volume still occurs on CEXs due to their access to institutional market makers. However, this comes with the risks of trusting a custodian, such as the chance of fraudulent behavior.

To further provide liquidity providers the ability to create this deep, on-chain liquidity, ICHI needed a streamlined solution to scale its rebalance function. They are excited to integrate Chainlink Automation into the future of its Vaults.

How Does Chainlink Automation Work?

Chainlink Automation is a decentralized service purpose-built to manage tasks on behalf of smart contracts. Chainlink Automation leverages decentralized, hyper-reliable, and economically incentivized automation nodes to wake up smart contracts when they need to perform critical on-chain functions, which usually take place at regular time intervals (e.g., every day at the same time) or based on external events (e.g., when an asset hits a specific price).

Some of the notable features of Chainlink Automation include:

• Highly reliable, performant, and decentralized automation
• Time-tested infrastructure that helps save costs 
• Built to enable faster scaling
• Unlocks new use cases

ABOUT ICHI

ICHI is a trustless market-making protocol that enables the use of sophisticated algorithmic strategies on Uniswap V3. Grow any token with low slippage, and on-chain liquidity using ICHI’s Vaults.

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DIA’s xLSD feeds enable DeFi protocols to support Liquid Staking Derivative tokens through a pricing approach that accounts for the collateral ratio.

DIA xLSD Price Oracle Features

• Fair-value pricing — Instead of leveraging exchange data to price LSDs, DIA leverages on-chain information to create “fair-value” price oracles.
• Better risk management — DIA’s fair-value LSD pricing evaluates the asset’s collateral ratio, to improve transparency and reduce the risk of market price manipulation.
• Fully customizable —  xLSD feeds can be custom-built for any Liquid Staked Derivative for any protocol on any network.

HOW DOES IT WORK?

1. The collateralization ratio is determined
   This requires the deposited volume of the base token and the volume of minted derivatives. Both metrics read on-chain from the smart contract of the staking protocol.
   
2. The market value of the base token calculation
   DIA’s price feeds calculates using trade data from multiple high-volume exchanges. Prices determine by filtering market outliers and applying a transparent pricing mechanism.
   
3. Fair-value feed is pushed on-chain
   xLSD feeds can deploy on any of DIA’s 30+ integrates L1 and L2 networks. Users can customize oracle parameters such as update mechanism and frequency.

In addition, DIA xLSD feeds vastly improve the capability of protocols to integrate your LSDs. Deploy price oracles for your LSDs to enable a number of DeFi use cases

• Safeguard from Failure — xLSD’s feeds allow protocol operators and users to monitor collateral ratios and detect hacks, overissuance, and other issues.
• Lending & Borrowing — Enable users to deposit their liquid staked assets as collateral to settle loans, run swaps, and many more.
• Options & Futures — Build sophisticated dApps for the new generation of assets that liquid staking derivatives represent.
• Asset Management — Power the automatic management of on-chain pools with DIA’s oracles for liquid-staked derivatives.

ABOUT DIA

DIA (Decentralised Information Asset) is a multi-chain, end-to-end, open-source data and oracle platform for Web3. The DIA platform enables the sourcing, validation, and sharing of transparent and verified data feed for traditional and digital financial applications. DIA’s institutional-grade data feeds cover asset prices, metaverse data, lending rates, and more.

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This partnership will be a win-win for both teams, as well as for the Web3 community as a whole. GetBlock consistently provides high-quality, scalable blockchain nodes, and has earned the trust of many top-tier projects.

GetBlock, launched in 2019, already connects users to 40+ blockchains, offering both shared and dedicated nodes in various packages. With their recent integration with MetaMask wallets for Web3 authorization, this partnership will bring another enhancement to their suite of products available for Web3 teams.

With this partnership, both the Pocket Network and GetBlock teams will be able to share insights and resources to further enhance Web infrastructure services and offer even more access to multichain RPC endpoints for each of its clients. At the same time, GetBlock will have access to Pocket Network’s decentralized infrastructure and extensive network of node runners and supported blockchains, helping to expand GetBlock’s service across even more chains and boost their resiliency through decentralization.

Making Web3 Access and Multichain RPC Service Unstoppable

One of Pocket Network’s core strengths is in the decentralization of its infrastructure, which allows them to provide reliable, high-performing, and cost-efficient multichain functionality. Its network of over 20,000 nodes around the world is what makes this possible. Now, through this partnership, GetBlock will be able to tap into that decentralized strength of Pocket and expand its own service across select chains.

Furthermore, this collaboration will also allow the two teams to grow together and focus on developing new products and features for users. They are particularly excited about the potential to expand their vision for unstoppable multichain access and offer new and innovative solutions for the Web3 ecosystem as a whole. In addition, this partnership will give them the opportunity to work more closely with GetBlock to explore new ideas and develop tools and services that will benefit the wider Web3 community.

ABOUT GetBlock

GetBlock provides a connection to blockchain nodes of over 40 cryptocurrencies via such APIs as REST, JSON-RPC, and WebSockets.

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ABOUT Pocket Network

Pocket Network is the TCP/IP of Web3 node infrastructure – a multi-chain relay protocol that incentivizes RPC nodes to provide DApps and their users with unstoppable Web3 access

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