Shadows Network will be the first project to bring synthetic assets to Polkadot‘s Substrate framework.
This is the result of a partnership between Shadows Network and DIA that aims to integrate oracles into the Shadows cross-chain protocol.
The partnership was announced by DIA itself, which points out that these synthetic assets will allow any real-world asset to be represented and exchanged on-chain.
Synthetic stablecoins, cryptocurrencies, commodities and equities are planned, for which tokens will be generated that will recreate traditional on-chain assets, giving access to markets that would otherwise be unreachable for on-chain investors.
The aim is to democratize finance, and allow investors to take positions on assets they are often unable to own.
The partnership between Shadows Network and Polkadot
The partnership involves Shadows Network leveraging DIA‘s oracle price feeds as a key part of their development toolkit, so that they can create pools and markets for synthetic assets whose price will be derived from external data sources, thanks to the oracles themselves.
DIA (Decentralized Information Asset) is an open source financial information platform that uses economic incentives in cryptocurrencies to source and validate data.
Shadows Network is a decentralized synthetic asset issuance protocol based on Substrate, which is Parity Technologies’ SDK that allows developers to create their own Polkadot-compatible blockchains, and also enables cross-chain asset synthesis and trading thanks to Polkadot.
The CEO of Shadows Network, Iror Chen, said:
“DIA’s tamper-proof oracles are highly regarded within the blockchain space, and the caliber of their developer team is impeccable. Electing to pursue a technical partnership with DIA was thus one of the easiest decisions we’ve had to make. We look forward to working with DIA and utilizing their best-in-class oracle technology to obtain reliable price feeds that support synthetic swaps 24/7 with prices updated in real time”.
The president of the DIA Association, Michael Weber, added:
“The development of the synthetic products is a very thrilling part to the ever growing DeFi ecosystem. We are very excited to join this expansion by providing transparent price oracles for Shadow Network on their path to develop the first hub for synthetics products”.
