Bitcoin DeFi (BTCfi) is a rapidly growing segment, but many applications there struggle to obtain accurate and reliable data about Bitcoin and related assets. APRO Oracle is specifically designed to meet these needs – this is how its integration works in real-world scenarios:
1. Types of BTCfi Applications Using APRO Oracle
APRO Oracle supports various types of BTCfi applications, including:
- DEX (Decentralized Exchange) for Bitcoin L2, Ordinals, and Runes.
- Bitcoin Liquid Staking Protocol (LST-BTC).
- Lending platforms with Bitcoin as collateral.
- Applications based on the Lightning Network.
- Projects integrating Bitcoin with AI.
2. Specific Integration Mechanisms with BTCfi
Scenario 1: DEX for Runes and Ordinals
Emerging Issues:
DEX handling Runes and Ordinals requires accurate real-time price data to avoid manipulation and ensure liquidity balance. This price data is hard to obtain because Runes/Ordinals are still new and volatile.
How APRO Oracle Integrates:
1. Data Collection from Multiple Sources: APRO collects price data for Runes/Ordinals from various sources, such as supporting exchanges, Ordinals scanning platforms, and secondary markets.
2. Off-Chain Processing & On-Chain Verification: Data is processed off-chain for speed, then calculated using Time-Weighted Average Price (TV WAP) to avoid false prices from flash loan transactions.
3. Data Delivery to DEX: Verified price data is sent to the DEX smart contract via a "pull" model (only when needed) to reduce gas costs. The DEX then uses this data to determine trading prices and maintain the liquidity pool.
4. Real-Time Monitoring: APRO continuously monitors data – if there are extreme price fluctuations, the data will be updated instantly to prevent losses for users.
Scenario 2: Bitcoin Liquid Staking Protocol (LST-BTC)
Emerging Issues:
The LST-BTC protocol requires data on Bitcoin staking yields in L1/L2, BTC prices, and asset reserves to ensure the stability of LST tokens and user trust.
How APRO Oracle Integrates:
1. Staking Yield Data: APRO collects staking yield data from Bitcoin nodes L1, L2 (such as Lightning Network or Rootstock), and staking partners.
2. Asset Backup Data (Proof of Reserve): APRO verifies the amount of Bitcoin staked off-chain, then sends proof to the LST-BTC smart contract on-chain. This assures users that LST tokens correspond to the actual asset reserves.
3. Calculation of LST Token Value: BTC price data from APRO is used to calculate the intrinsic value of LST tokens, allowing users to know the value of their assets at any time.
4. Yield Distribution: The smart contract uses yield data from APRO to automatically distribute yields to LST holders.
Scenario 3: Lending Platforms with Bitcoin as Collateral
Emerging Issues:
Lending platforms require accurate BTC price data to determine collateral ratios and prevent unnecessary or unfair liquidations.
How APRO Oracle Integrates:
1. Real-Time BTC Price Data: APRO provides a price feed for BTC that is updated every few seconds, with cross-verification from multiple sources.
2. Collateral Ratio Determination: The smart contract of the lending platform uses price data from APRO to automatically calculate the collateral ratio. If the BTC price drops and the ratio falls below the threshold, the platform will issue a warning or perform fair liquidation.
3. Protection from Manipulation: With the TV WAP model, APRO prevents price manipulation that could lead to unfair liquidations (e.g., flash loan attacks that temporarily drop prices).
4. Integration with Lightning Network: For quick small-scale loans, APRO provides price data for transactions on the Lightning Network, ensuring the lending process runs smoothly and quickly.
Benefits of APRO Oracle Integration for BTCfi
- High Data Accuracy: Preventing errors and manipulations that harm users.
- Efficient Gas Costs: The "pull" model and off-chain processing make operational costs cheaper.
- High Availability: No single point of failure due to the decentralized node network.
- Support for New BTCfi Features: Such as Runes, Ordinals, and Lightning Network, which are rarely supported by traditional oracles.
Thus, APRO Oracle truly becomes the backbone for BTCfi applications, making them more secure, efficient, and reliable.
