Use Cases
UDF is designed to cater to a wide range of exciting use cases.
Modularity and Authenticity: UDF’s exceptional modularity allows protocols to create fully customizable data feeds tailored to their specific needs. Unlike traditional oracle solutions, Entangle offers a flexible system free from restrictive infrastructure and excessive fees. Builders can define and control their own security parameters and Transmitter agents, to set up their data feeds.
Flexible Security Settings: Developers can define their own security parameters and choose their own Transmitter agents, avoiding the rigid setups and high fees often associated with traditional oracle solutions.
Customizable Consensus: Transmitter agents can be configured with customizable consensus settings, such as requiring votes from a certain number of agents to achieve consensus.
Sources high quality data: Data integrated into UDF is sourced from a multitude of premium, authenticated sources. This data undergoes rigorous aggregation and validation processes on the Entangle blockchain, removing any single point of failure and ensuring the highest integrity and quality of information.
Rapid integration and deployment: Developers can swiftly build, test, and deploy sophisticated DeFi applications. The framework supports rapid integration with multiple external data sources, ensuring that DeFi projects can go live faster and with greater reliability.
Blockchain-agnostic: Entangle's UDF is designed to be blockchain-agnostic, offering developers the flexibility to access external data and computation across all leading smart contract-enabled blockchain networks, supporting the development in both EVM and non-EVM environments.
#1 DeFi
Lending and Borrowing
Entangle's UDF can revolutionize lending and borrowing platforms by providing real-time data feeds for issuing and settling loans, monitoring collateral positions, and triggering automated liquidations. This ensures that the platforms remain solvent and users' assets are protected.
Options & Futures
Advanced financial instruments such as options and futures can leverage Entangle's data feeds to dynamically set funding rates and settle agreements. Real-time data ensures platform solvency and accurate risk management, enhancing the reliability of these financial products.
Decentralized Exchanges
UDF can concentrate liquidity around market prices, improving capital efficiency. Automation can execute limit orders, enhancing the trading experience, while the Entangle Agent Network facilitates seamless and secure token transfers across networks.
#2 RWA
Entangle's UDF seamlessly integrates off chain real-world data with smart contracts, allowing developers to focus on functionality without data connectivity concerns.
UDF provides a robust, customizable data infrastructure that ensures secure, real-time delivery of critical information to smart contracts. This framework allows issuers to seamlessly integrate off-chain data, such as market prices and proof of reserves, into the blockchain, ensuring that RWAs are accurately represented and managed on-chain.
For example, Entangle is gearing up to provide T-Bills and Commodities as part of its UDF offerings. These real-world assets, once tokenized, will benefit from Entangle's secure and reliable data feeds.
Low cost: Entangle’s pull-based architecture minimizes costs, only fetching data when needed, making it a cost-effective solution for reserve reporting.
Enhanced transparency for projects: Ensure that the reserves backing stablecoins and other assets are accurately reported and easily verifiable.
Improved trust in bridges: Provide real-time verification of reserves held in cross-chain bridges, reducing the risk of hacks and ensuring asset security.
Compliance and auditing: Facilitate regulatory compliance by providing transparent and auditable proof of reserves, supporting financial reporting and audits.
#3 Proof of Reserves (PoR)
Cross-chain reserves are sourced from the network where the reserves are held, leveraging Entangle's ability to handle data across various blockchain environments. Projects use specific smart contracts to self-report owned addresses. Users must assess the risk associated with self-reported data.
Cross-Chain Reserves
Third-Party Verification: An auditor, accounting firm, or other third party audits and verifies the reserves. Combines fiat and investment assets into a numeric value reported against the token.
Custodian Reporting: Data is pulled directly from the bank or custodian holding the assets. Suitable for assets that require no additional valuation, simply reported on-chain.
Self-Reported: Reserve data is read from an API hosted by the token issuer. Self-reported data carries additional risks, and users must assess the issuer's risk themselves.
Methods of Offchain Reserves Data Reporting:
Offchain reserves are verified through APIs via external adapters, ensuring the integrity of data sourced from traditional financial systems.
Offchain Reserves
Each type has its own methods of data sourcing and reporting, designed to ensure accurate and reliable reserve information.
Offchain Reserves
Cross-chain Reserves
Entangle’s PoR feeds cater to two main types of reserves:
Entangle's UDFs offer a powerful solution for Proof of Reserve (PoR) feeds, addressing the needs of both offchain and cross-chain reserves. By providing a secure, customizable, and cost-effective data interaction infrastructure, Entangle ensures that reserve data is accurate, reliable, and easily accessible.
#4 Connecting Smart Contracts to Offchain Data
Entangle's UDF empowers developers by enabling seamless interaction between smart contracts and offchain data. This framework allows developers to concentrate on enhancing the functionality of their smart contracts without being bogged down by the complexities of data connectivity.
Let’s take an example. A decentralized sports betting platform needs real-time sports data to execute bets and payouts accurately. Integrating this offchain data into their smart contracts poses a significant challenge due to the complexity and reliability concerns.
Entangle's UDF offers a seamless way to connect the betting platform’s smart contracts with reliable, real-time sports data from various sources. Here’s how it works:
Data Acquisition: The UDF framework connects to multiple sports data APIs, ensuring access to the latest results and statistics.
Data Validation: Using decentralized oracle networks, UDF ensures that the data is verified and trustworthy before it is fed into the smart contracts.
Data Integration: The UDF pushes the validated data into the smart contracts, enabling real-time updates for bets and payouts.
Execution: The smart contracts use this data to automatically settle bets, calculate payouts, and update user balances.
#5 Stablecoins
Stablecoins come in various types: fiat-collateralized, crypto-collateralized, algorithmic, and hybrid. Reliable price data is crucial for maintaining their peg, and this is where Entangle's UDF plays a pivotal role.
Enhancing Stablecoin Protocols with Entangle’s UDF
Price Monitoring for Over-Collateralized Stablecoin
Entangle’s UDF connects to multiple data sources to provide real-time market prices for collateral assets. This ensures the stablecoin protocol can accurately calculate the total value of the collateral and maintain the required collateralization ratio. Continuous monitoring and timely updates help trigger liquidation mechanisms if collateral value falls, preserving the stability of the stablecoin.
Ensuring Stability for Fiat-Collateralized Stablecoins
Fiat-collateralized stablecoins require transparent and accurate tracking of fiat reserves. Entangle’s UDF integrates with financial data sources to verify and report the reserves backing the stablecoins, ensuring that each stablecoin issued is appropriately collateralized and maintaining user trust.
Dynamic Supply Adjustments for Algorithmic Stablecoins
Algorithmic stablecoins rely on precise price data to adjust their supply based on market conditions. Entangle’s UDF provides the necessary price feeds from various markets, allowing smart contracts to expand or contract the stablecoin supply dynamically. This helps the stablecoin maintain its peg to the target value.
Hybrid Stablecoins
For hybrid stablecoins, which use both collateralization and algorithmic mechanisms, Entangle’s UDF offers a dual benefit. It provides reliable collateral valuation and enables dynamic supply adjustments through accurate price feeds, balancing stability and flexibility.
Low-Latency Price Updates
Stablecoin protocols require low-latency price updates to respond quickly to market changes. Entangle’s UDF delivers real-time price feeds, ensuring that the stablecoin’s value remains stable and accurately pegged. This is particularly critical for high-paced market events where rapid data updates are essential.
Confidence Intervals
Entangle’s UDF also includes confidence intervals around reported prices, reflecting market volatility and price divergence. This data helps stablecoin protocols adjust their operations with greater precision, enhancing their stability mechanisms.
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