Fueling Polkadot DeFi: DIA Oracles for Native Assets via the DeFi Infra & Tooling Bounty Funding
Custom scrapers enable DIA to deliver transparent, source-level price feeds for Polkadot’s leading DeFi Protocols, Hydration and Bifrost
Velocity Labs Grant Powers DIA’s DEX Data Integration on Polkadot
DIA has successfully integrated on-chain data from two of Polkadot’s most prominent DeFi Protocols—Hydration and Bifrost—through a development grant awarded by Velocity Labs. This collaboration enhances DIA’s ability to provide transparent, source-level price feeds for assets traded on these platforms, reinforcing its commitment to data integrity and ecosystem support.
The limited availability of oracle infrastructure for parachains has been a major hurdle for DeFi growth and product development on Polkadot. Thanks to the work done by DIA, we’ve unlocked the potential of appchains like Hydration by providing them with the essential tools to innovate at the application layer—boosting both yield opportunities and TVL.Nicolas ArevaloCo-Founder of Velocity Labs
DIA’s Unique Approach: Direct On-Chain Data Extraction
Through the Velocity Labs grant, DIA developed custom data scrapers for both Hydration and Bifrost, allowing for direct extraction of trade and liquidity data from these DEXs. Unlike traditional oracles that rely on third-party APIs or aggregated data sources, DIA’s methodology ensures:
- Transparency: Access to raw, verifiable on-chain data, directly from sources.
- Accuracy: Real-time pricing information reflecting actual market conditions.
- Inclusivity: Support for a wide array of assets, including niche and long-tail tokens.
This integration empowers DIA to offer robust price feeds for assets traded in the DEXs that are essential for various DeFi applications, including lending platforms, stablecoins, and synthetic assets, thereby enhancing the reliability and trustworthiness of financial products built on Polkadot.
Strengthening Polkadot’s DeFi Ecosystem
DIA’s integration with Hydration and Bifrost not only expands its price oracle data coverage by now supporting some of the Polkadot native assets such as vDOT, but also fosters the utility and growth of Polkadot’s DeFi ecosystem. By providing accurate and transparent price feeds, DIA supports the development of secure and efficient financial applications, fostering innovation and growth within the network.
Integrated DEXs
Hydration: Unified Liquidity via Omnipool Architecture
Hydration, formerly known as HydraDX, operates as a DeFi hub within the Polkadot ecosystem. Its innovative Omnipool architecture consolidates multiple assets into a single liquidity pool, allowing users to provide liquidity with a single token and facilitating efficient, low-slippage trades across a wide range of assets . This design simplifies liquidity provision and enhances capital efficiency for traders and liquidity providers alike.
Bifrost: Cross-Chain Liquid Staking and DeFi Access
Bifrost functions as a liquid staking platform and DeFi protocol, enabling users to stake assets like DOT, KSM, and others to receive vTokens—liquid staking derivatives that can be utilized across various DeFi applications . Operating as a parachain on Polkadot, Bifrost leverages cross-chain interoperability to provide flexible and secure staking solutions, contributing to the broader DeFi landscape within the ecosystem.
