Equilibrium teams up with LiquidApps for LiquidOracles integration

The blockchain industry continues to grow and progress as, what feels like, a magnitude of companies in the space constantly craft new solutions through collaborations and combinations of their technologies. 

The most recent collaboration announced recently is between a blockchain firm LiquidApps, who focuses on optimization of decentralized development, and Equilibrium - a core infrastructure studio.

The role of oracles in the blockchain industry

From what is known, the new collaboration is expected to result in the integration of LiquidApps' LiquidOracles solution into Equilibrium's EOSDT stablecoin framework. 

The end goal of the move is to allow EOSDT to source asset pricing data. However, it will be achieved in a very robust and seamless way - bypassing issues and attacks that could harm the network, or even cause congestion.

Oracles play a very important role in the DeFi sector. They provide information regarding asset prices from outside the blockchain itself. This external data is crucial for various processes such as margin calls processing, dynamic price modelling and risk management.

All of these processes heavily depend on oracles, which allow for greater security. The only issue is that oracles may become strained by blockchain transaction congestion. As an out-of-blockchain tech, they might stop working properly, and the mechanisms may get frozen - literally like a pipe that freezes causing the water to stop flowing. In data terms, this bottleneck becomes a target for hacks. 

The importance of the collaboration

The integration of LiquidOracles will help prevent bottlenecks from happening on the Equilibrium network. 

"We are excited that Equilibrium has decided not only to integrate LiquidOracles, but to scale its impact by becoming a DAPP Service Provider (DSP) on the DAPP Network,” said LiquidApps CEO, Beni Hakak.

He added that “LiquidOracles is crucial to supplying data with a high degree of integrity to DeFi DAPPs, and now third-party developers can gain access to Equilibrium's efficient price feeds and seamlessly integrate them within their DAPPs. We are witnessing a renaissance of next-gen DeFi taking advantage of the unique scaling features of the DAPP Network. Equilibrium has led the way and we expect more DAPPs to follow as DeFi development continues to advance and accelerate."

LiquidOracles integration brings a number of advantages to the project. such as source freedom, trust balancing, customizable trust, and staking advantages. We’ll be watching this collaboration closely.