B2B-focused cryptocurrency trading platform WooTrade has recently announced a partnership with decentralized oracle platform Chainlink. The two will work together on verifying trading histories from institutions and professional traders on WooTrade. The announcement was shared in a Medium blog post on December 7.
According to WooTrade, its primary clients are composed of institutional traders, asset managers, and professional trading teams. With the help of Chainlink, these investors and traders will be able to verify their complete transaction history in a transparent and accurate manner. By doing so, WooTrade enables its users to add support for innovative trading products such as tokenized trading strategies.
WooTrade is not like most crypto exchanges. In fact, the project simply relays investors to deep pools of liquidity which leading trading platforms source. By offering this service WooTrade allows clients to easily execute and create high-volume orders which may require more liquidity than usual.
The team claims some of the most popular hedge funds and exchanges utilize WooTrade. These include Three Arrows Capital, Gate.io, and BitMax. Furthermore, the platform itself generates on-chain datasets which include order books, withdrawals, deposits, prices, settlements, and more.
In order to profit from the rise of decentralized finance and its brand new financial instruments, WooTrade plans to cryptographically prove the success of its clients. Showcasing their profits and having it confirmed by Chainlink means that the platform can offer synthetic assets based on the track record and trading strategies of these traders.
This would offer a decentralized version of the already existing cryptocurrency trading bots platforms. Besides automated trading strategies, users can also track and utilize the positions of other successful traders.
Why did WooTrade pick Chainlink?
WooTrade chose Chainlink as its primary oracle solution for verifying the trading histories of its institutional clients. The team mentioned Chainlink’s performance and network growth as the main reasons why they are confident in the oracle provider.
According to the blog post, the two have partnered and entered an early stage of creating a new DeFi ecosystem. Supposedly, Chainlink will play a very active role in this project. WooTrade CEO Jack Tan stated the following:
“DeFi is one the fastest growing and most innovative new markets in the world, pushing the boundaries of how we build and think about financial systems and monetary assets.”
Furthermore, Tan added that by joining the Chainlink oracle network, WooTrade will directly supply the oracles with important pieces of data and information. Alongside this, the platform itself will also be able to monetize various datasets generated from institutional traders.
Chainlink resumes creating interest for its oracle network at the same tempo as before. As Defiye reported earlier this month, the oracle provider has effectively replaced the ‘Keepers’ on Andre Cronje’s Keep3r Network. From now on, all keepers who have actively participated in the platform will have to convert into Chainlink node operators.
This may immensely increase the valuation of the LINK token as the network instantly converts all generated KP3R income into LINK. Will Chainlink’s successful partnership spree end with Yearn’s ecosystem this year or is there more to come?