Umbrella Network, the decentralized Layer-2 Oracle solution, revealed on Wednesday (September 15, 2021) that they had formed a partnership with IX Swap, which claims to be the first decentralized finance or DeFi platform that provides Automated Market Making (AMM) & Liquidity Pools (LPs) for security tokens and tokenized stocks.
As noted in an update shared with CI:
“Under the aegis of this partnership, Umbrella Network‘s decentralized oracles will provide real-world asset data to IX Swap’s Liquidity Pools and AMMs. This may include stock prices, S&P 500 indices, Options data, and more.”
Umbrella Network and IX Swap will also be working cooperatively towards the development of a custom data feed for “private asset data.” This reportedly marks the “first-of-its-kind” data feed to be used “across both traditional and crypto financial ecosystems.”
“We at Umbrella Network are genuinely excited about this partnership with IXSwap as we look forward to the development of the world’s first Private Assets Pricing Feed,” stated Sam Kim, the founding partner at Umbrella Network.
Kim added that it will be “a major step in bringing together CeFi and DeFi as we empower IX Swap with dynamic and real-time price feeds to be a global Liquidity Solution for all STO Exchanges.”
As mentioned in the announcement, every data point on the Umbrella Network is “tagged with proof of consensus” which ensures the “reliability” of data “even after data retrieval by dApps and other such innovative DeFi solutions like IX Swap.”
The release further noted that Umbrella Network’s decentralized oracles “add new data points effortlessly, and in this case, unique data points, due to its Merkle tree architecture that enables batching of large sets of data before commitment to the Blockchain.”
Julian Kwan, Founding Partner of IX Swap, remarked:
“We are thrilled to integrate Umbrella’s scalable oracles into IXSwap’s sophisticated suite of Liquidity Pool and Automated Market Makers forsSecurity tokens. I’ve been focused on STOs since 2017 and believe this is one of the biggest opportunities in the world today. I’m glad to be able to work with Umbrella’s innovative and scalable oracle solutions to be able to support some of our newer initiatives within the blockchain space.”
IX Swap and Umbrella Network will also be teaming up to “develop a private asset data feed that contains assets that are not publicly traded.” Such data will include “pricing data on shareholding patterns of unlisted companies, their paid-up capital, AGM notes, and more.”
This new data feed will be beneficial for things like cross-border mergers and acquisitions, among others, as “authoritative data on unlisted companies becomes a chore to fetch and authenticate in the current financial ecosystem.”
Security tokens and tokenized stocks of private assets are “largely considered illiquid not because of the absence of demand but because of the absence of reliable data regarding capital, compliance, and other factors,” the announcement explained.
Umbrella Network aims to address this issue by leveraging real-time price private data feeds on the IX Swap platform.