Trading oracles: Initial Oracle Offerings with Zap Protocol

All the cool kids have been investing in oracle projects ever since Chainlink brought oracles into the mainstream. And for good reason. Oracles are a crucial part of the decentralized future, as they are the link between the worlds´data and the blockchain. It is likely that massive amounts of data will be flowing through them. And with big data comes big money. Find an undervalued and promising oracle protocol, and chances are you’ll be whitnessing some epic returns as investors scramble to find the next hot investment opportunity.

Note how Zap is already halfway Chainlinks’ maximum ROI, while sitting at just 0.28% of its marketcap. Zap also already beat Band Protocols´ maximum ROI by 800%, despite sitting at a marketcap 10 times smaller.

But what if we could take that one step further? What if we could diversify investments into oracles directly, instead of oracle protocols only? Perhaps you’re bullish on that one specific data feed, that one big company that is going to offer its’ data, or that radical new oracle design you read about in the IOO (Initial Oracle Offering) whitepaper. You’d be able to trade oracles on exchanges, and track your gains with your favorite app in between your other crypto investments.

Zap Protocol allows for an oracle to become tokenized into a tradable ERC20 token

Sounds too futuristic? With Zap Protocol, this is possible today. And a rather familiar name will soon have its data turned into the first major Initial Oracle Offering: Coingecko.

Coingecko and Zap Protocol partnership announced March 9th, 2020

Coingecko IOO

Coingecko and Zap Protocol entered into a partnership earlier this year, that allowed them to reap the benefits of each others’ platforms. This included a grant for Zap to oraclize and offer Coingecko’s data to developers and, unique to the Zap Protocol, crypto speculators.

Specific details of this exciting IOO are yet to be released, but we know the template built for this oracle offering will be made available to everyone. It will be interesting to see if regular, centralized exchanges are going to offer it to their customers at some point. And if similar businesses, such as Coinmarketcap, are going to jump in. Perhaps Coingecko will eventually even offer oracle marketcap rankings, next to their defi rankings. One can only expect that this remarkable event could potentially attract many more parties to launch their own IOO´s on Zap Protocol in the future.

Oracle marketcap rankings

Templates

Templates aren’t exclusive to the upcoming Coingecko oracle launch. There are multiple types of oracle templates readily available. And anyone is able to customize, or build their own. But Zap templates go beyond oracles.

Oracles and tokens are just two of the powerful tools available when building with Zap Protocol. Leveraging its complete set of advanced tooling, Zap is able to realize all sorts of complex blockchain products, instantly. Templates already available today include those for DAO’s and real estate tokenization, for example. The amount of turn-key templates for instant blockchain-powered products is only expected to grow, and the Coingecko oracle will be the latest to join.

How do IOO´s work?

As we now know, the ability for anyone to invest in any oracle directly, is exclusive to the Zap Protocol. No other oracle protocol is able to do the same. This sets the stage for a whole new dimension in speculative crypto investing, and might attract swarms of investors from other oracle protocols, who were previously only able to invest in their preffered oracle project tokens in general. Which, as we noticed earlier, already is a booming market on its own (to which $ZAP is no exception). But how exactly is this possible?

We’ve all heard the narrative that “Everything will be tokenized”. Zap Protocol offers exactly this, like Ethereum does. Except it also offers an entire oracle framework, like Chainlink does. And bonding curve marketplaces, like Uniswap.

Zap is like Ethereum, Chainlink and Uniswap combined, allowing for the tokenization of anything, including the oracles themselves, while offering decentralized, liquid markets.

Note how this means real-world data can be pulled and verified for any asset you want to tokenize, while simultaneously actually tokenizing it. And liquidizing it. Instantly. It’s not hard to see how easy it would be to launch the next stablecoin, tokenized commodity, tokenized stock, tokenized property or tokenized blue-chip collectible with Zap Protocol.

However, to achieve the IOO usecase (as you might start to realize, a Pandora’s Box of usecases open up when we combine Zaps’ different tools), Zap Protocol leverages three of its core components in order to be able to offer tokenized oracles that anyone can trade:

  • Oracles: One-click oraclization of the API, or data feed. Different oracle templates ensure different usecases can be mated to their corresponding, optimal oracle types (say, a multi-party price feed aggregator for a defi product)
  • Bonding curves: Setting a custom, pre-defined pricing curve while offering automated market making. These can financially incentivize speculators to find the most interesting oracles early (in order to sell higher up the curve and profit), while offering full liquidity from the get-go
  • ERC20 token factory: The tokenization of the asset or service, in this case an oracle, on the Ethereum blockchain. This is what allows it to be traded and stored on regular exchanges outside of Zaps’ native, decentralized marketplace

Fun fact: Zap is the originator of the term “bonding curves”, and became one of the first live implemtations of the technology. Bonding curves are now widely used by prominent defi projects such as Uniswap, Curve Finance, many DAO’s and governance token launches. Band Protocol choose to implement it in their initial concept.

In the future, we could be seeing many more IOO’s being released, as businesses are looking to monetize their data on different oracle networks. This could range from the obvious ones, like a Binance or Coinbase, to more low-profile ones such as individual developers looking to release that next-gen oracle, including whitepapers to demonstrate their genius.

Bonus: Theoretically, even other protocols’ oracle endpoints could be imported and tokenized. This could potentially open up speculation markets on individual oracles from other protocols as well.

How to participate?

As mentioned earlier, specific details about the Coingecko IOO are to be revealed soon, but it is expected to be accessible to speculators in multiple ways:

  1. Login to the Zap protocol, find the Coingecko oracle on either landing page or in between available oracles and deposit.
  2. Deposit through the Zap widget on a dedicated countdown page.

Other possible venues:

  1. Deposit through the Zap widget on the Coingecko website.
  2. Other exchanges who participate in the IOO
  • The Zap “widget” is a small, lightweight GUI to a specific asset on the protocol that’s added to any website with just one line of code. It provides quick and easy access to bonding and un-bonding and comes as a standard feature for anything listed on the decentralized marketplace.

Not your average oracle network

As we can tell, Zap Protocol is not just another oracle network. And there’s a lot more to it than ‘just’ some cool oracle investing. It‘s the earliest documented oracle solution on mainnet (it actually preceeded Chainlink), and it’s surely one of the most versatile as their team had the vision, and time, to go beyond ‘simply’ oracles. Which, on their own, already form one of the most immense usecases in all of blockchain. It is the additional set of advanced tools that really sets Zap apart. Only time will tell what other exciting things are going to be built atop of this truly one-of-a-kind protocol, but in the meantime, we have a Coingecko IOO to participate in.

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Crypto projects & topics of interest in a non-technical way. Author Twitter: @dave_jonez_02 & @3mperat0r.

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