BOSAGORA Blockchain to integrate Chainlink to determine fair staking returns from FMway
BOSAGORA is proud to announce that we are integrating Chainlink, the most widely adopted blockchain oracle solution, to ensure secure and reliable prices for calculating returns in our innovative staking pool investment model. The BOSAGORA BOA staking pool will use a Chainlink Price Oracle to issue a fiat loan backed by BOA tokens, which will be invested into BOSAGORA’s partner FMway — an equity-based investment algorithm. We will also use Chainlink oracles to calculate the profits made from FMway investments, as well as convert the profits back into BOA tokens to distribute to investors as staking yield.
BOSAGORA and Why We Selected Chainlink Oracles
BOSAGORA is a blockchain platform guided by the decisions of a decentralized autonomous organization (DAO) referred to as the Congress Network. BOSAGORA allows developers to build trust contracts (our form of smart contracts) in an easy-to-develop language, enabling the creation of programmable blockchain transactions secured by our full-node Proof of Stake and Federated Byzantine Agreement consensus algorithm.
Part of expanding the function of BOSAGORA is incorporating data and services that exist outside the BOSAGORA blockchain. Since blockchains have no built-in capabilities for making external API calls, trust contracts require an additional piece of secure middleware known as a blockchain oracle to retrieve data on its behalf and broadcast it on to the blockchain. Not only does the oracles serve as a bridge between an on-chain trust contract and the off-chain API, but it validates the integrity of the data and provides secure delivery to the blockchain to ensure high availability and tamper resistance.
An example of the ETH/USD Price Oracle Network
After reviewing various oracle solutions, we selected Chainlink as the most secure, reliable, and time-tested oracle network on the market. Importantly, it uses decentralization at the data source and oracle network level to ensure there is no single source of truth or single point of failure in the oracle mechanism. Its oracle networks are supported by a large collection of secure oracle node operators run by leading blockchain DevOps, who have credential management capabilities that allow them to source data from premium data providers. This leads to highly reliable, Sybil resistant oracle services and allows BOSAGORA trust contracts to consume high-quality data feeds.
Integrating Chainlink into The FMway Staking Platform
FMway is a big data-based stock investment algorithm that uses a quantitative strategy to invest in top 50 equities with high growth potential by analyzing the latest quarterly financial data. The FMway algorithm can be applied to any securities market in the world, with a backtest simulation (BTS) on major securities markets around the world over the past 20 years showed it to have an outstanding performance of 39.7% on average as an annual earnings rate. It’s track record in Korean markets is similar to the BTS.
To expand the utility of the BOSAGORA platform and its token, we aim to allow BOA token holders to stake in a trust contract, which is used as collateral for a loan that is invested directly in FMway’s algorithmic trading strategy. However, bringing this to fruition on the blockchain requires an oracle network to provide BOSAGORA trust contracts with up-to-date exchange rates between BOA and fiat currencies. Hence why we selected Chainlink, which will use a decentralized oracle network to aggregate premium price data from across the market and deliver a single trusted exchange rate to BOSAGORA when needed.
This will enable the trust contract to convert the staked BOA into a fair market fiat loan in real-time, which is then invested into FMway. It will also allow fiat profits earned from FMway to be calculated on-chain, automatically exchanged for BOA, and distributed to users as yield. Thus, BOA token holders will be able to put their BOA tokens into a historically successful financial investment algorithm directly on-chain to earn passive yield.
“The BOA staking pool is an opportunity to expand the scope of DeFi staking and yield aggregators by using on-chain tokens in off-chain yield opportunities that focus on investing in traditional equities,” said BOSAGORA President Inhwan Kim. “By using Chainlink, we will ensure that users have highly secure and reliable exchange rates during all junctions of the automated yield-bearing strategy, making it a more trusted and transparent option for users wanting a more traditional way of putting their cryptocurrency to work.”
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.#financechainlinkdefi