Infrastructure for Decentralized Finance with Tentacles

Infrastructure for Decentralized Finance with Tentacles

We are in a time of unprecedented change and Ethereans the world over have risen to the challenge. As financial institutions refuse to act in the best interests of the people, Decentralized Finance (DeFi) is transforming legacy products into permissionless protocols.

During the depths of crypto winter, projects such as Synthetix, Compound, and many more have grown at an exponential rate. During their meteoric rise the need for essential infrastructure has come to the forefront and the market has responded, with support for projects delivering critical services that support DeFi’s ever changing technology landscape.

As new blockchain use-cases emerge from DeFi, project teams must rise to the challenge in creating the ‘money legos’ that make truly decentralized applications possible. Unlike the centralized equivalents who rely on a select few, the burgeoning DeFi industry has its own unique set of requirements and constraints when it comes to third party service providers.

Only as good as those on which you depend

When it comes to composability, many platforms face problems regarding interdependence on other services. Great strides are being made to address concerns around transparency and auditability of external solutions, but individual users are still exposed to risks stemming from ambiguity.

Data oracles aim to provide accurate and dependable data for a broadening range of applications, but concerns around how they source and process data are yet to be addressed. Inconsistencies lead to exploits by bad actors and while strong competition within each sector provides assurance that these risks will be mitigated, their success depends on much more than just quality, accessibility, and auditability.

At the center of these concerns is centralization. We understand that innovators must forgo decentralization to some degree in certain cases, but resisting the easy route is critical if we are to succeed. The DeFi space moves quickly, obsolescence is always on the horizon, and the inherent permissionless-ness is attracting competent technologists at an ever increasing rate.

Trust undermines DeFi’s potential

Many thought leaders within the broader cryptocurrency community have explored the importance of decentralization across the entire stack of an application. While more and more people are interacting with permissionless systems, whether these systems are in fact trustless is increasingly scrutinized.

These concerns are exacerbated by the tendency for value locked to move between protocols so erratically. After all, these human actions are often driven by emotions rather than logic, and such fear, uncertainty, and doubt can force users to make irrational decisions.

For those who’ve been in the crypto space long enough, it’s widely accepted that choosing your sources wisely and widely, is essential for the simple fact that individual data sources are more likely manipulated. We can learn from the mistakes of those who’ve been burned by having too much trust in a single entity.

There should be no single points of failure when we are pioneering decentralized technologies and intermediary risks should be mitigated however possible in order to legitimize DeFi. Centralized entities require trust, are easily corrupted, and ensuring users can better spread risks associated with early adoption should be a core focus of the user experience.

Introducing OctoFi

OctoFi is a next generation open source platform providing decentralized finance oracles tentacles for DeFi. We believe that the term ‘oracle’ itself implies unreasonable dependence on a single source of truth. In most cases, an oracle is viewed as singular, and while we appreciate their importance, we foresee the existence of many, all of which are auditable against one another.

Within the decentralized finance world, individuals shall act as proxies to an aggregation of oracular data sources, in order to optimize their own participation and interaction with an ever expanding landscape of protocols.

OctoFi users will benefit from an ‘octomized’ structure whereby ‘tentacles’ connect them with various applications, while leveraging truly open and transparent infrastructure. Stakeholders will play an important role in data validation while pioneering a new frontier of community governance for long term, sustainable adaptability.

Octoken - where it all begins

OctoFi infrastructure is designed for frictionless oversight by incentivised stakeholders who share in its best interests. Data sourcing, provisioning, verification, quality assurance, storage, and consumption, all utilise the such tokenomics for effective governance.

OCTO governance tokens are essential to:

  • Participating in voting to settle governance decisions
  • Remuneration for sourcing and provisioning data collection
  • Verifying data tentacles and support systems with staking
  • Funding development resources and platform support
  • Gaining access to live data feeds and API marketplace

Our flagship project, Octoken, includes bonding curve distribution and decentralized exchange allocation of the OCTO governance token commencing 14 September 2020.

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Governance Token Mechanisms for Octoken Holders

Infrastructure for Decentralized Finance with Tentacles