Umbrella Network, a decentralized Layer-2 oracle solution, today announced its launch on Avalanche, providing the ecosystem access to high-scale and low-cost oracles.
Avalanche is designed as a highly scalable ecosystem, with the aim of delivering near-instant transaction finality while levying low transaction fees. It has grown at a rapid pace, hitting new all-time highs in user activity, including transaction volume, unique addresses (670,000-plus), and assets transferred from Ethereum to Avalanche over the Avalanche Bridge ($5.9 billion).
At launch, Umbrella Network will have more than 1,800 data pairs on Avalanche with ambitions to increase offerings to 10,000 data pairs by the end of this year. With the help of Umbrella Network, Avalanche will be able to expand the ecosystem’s current data offerings tenfold, improving user experience and driving community momentum.
“We have seen a lot of momentum on Avalanche over the past few months,” Umbrella partner Sam Kim said. “Umbrella Network is uniquely positioned to provide the data the ecosystem needs at a much higher scale and reduced price point compared to other oracles currently operating within the network. It is also well positioned to support many of the dApps looking for more custom or sophisticated data solutions outside of the more commonly available data feeds.”
Umbrella Network will provide oracle data including both the mid and long tail of the crypto market as well as the US equities markets and the entire Russell 2000, a market index comprised of 2,000 small-cap companies. It will also offer implied volatility and arbitrage-free option pricing data to the ecosystem. These provide the information needed for community members to make informed decisions on investment strategies and other moves.
In addition, Umbrella Network has been consistently moving towards making its oracle infrastructure multichain and interoperable. This launch adds to the growing number of chains they support, having previously launched on Ethereum, BSC, and Polygon earlier this year.
Umbrella Network utilizes the advances in Merkle tree technology to write multiple data points on a single on-chain transaction, making batching data to smart contracts more accurate and cost-effective. They believe a community-owned oracle solution is essential to creating a truly decentralized financial system.
