Gora and RociFi, two prominent players in the decentralized finance (DeFi) sector, have joined forces to create the DeFi Risk Oracle. This strategic merger aims to address the challenges faced by DeFi in terms of asset valuation and risk assessment by combining their expertise in data feeds and credit scoring.
In DeFi, accurate and comprehensive data is crucial for maintaining secure and fair financial systems. Oracles act as bridges between real-world information and blockchain networks, which are isolated by nature. Despite the integration of oracles, the DeFi sector still faces issues such as precise asset valuations and detailed credit data, which hinder the development of customized financial products and governance systems.
To accelerate innovation in the DeFi landscape, Gora, an oracle platform built on Algorand, and RociFi, a provider of on-chain credit scores from Ethereum Virtual Machine (EVM) wallets, have announced their merger. The union of Gora’s diverse data feeds and RociFi’s specialized credit and risk scoring protocols will give birth to the DeFi Risk Oracle.
Oracles are essential in DeFi ecosystems as they fetch and verify real-world data for blockchain networks. With the DeFi Risk Oracle, the merger aims to provide a comprehensive solution for DeFi applications.
Gora, a participant in the Cointelegraph Accelerator, operates as a multichain oracle network, offering tailored data feeds for various on-chain operations. RociFi complements Gora’s features by providing a protocol that assesses the creditworthiness of blockchain wallet addresses based on their transaction histories. This assessment is crucial in determining personalized borrowing terms and risk assessments.
The DeFi Risk Oracle, born from the merger, integrates Gora’s data feeds with RociFi’s credit scoring expertise to deliver reliable collateral price feeds and wallet-level credit data. These features enable projects to gain real-time access to comprehensive wallet information, ensuring sybil-resistant governance, customized borrowing terms and targeted airdrops, and transparent protocol health monitoring.
The merger is structured equally, with the RociFi brand and its ROCI token transitioning into the Gora Network ecosystem. ROCI holders will be able to seamlessly convert their tokens to GORA tokens on a 1:1 dollar value basis, allowing them to benefit from Gora’s offerings, such as participating in node operation and staking systems with competitive annual percentage returns (APR).
Moreover, the collaboration between Gora and RociFi will accelerate RociFi’s product development timelines and pave the way for the launch of the Gora.Fi platform and an ERC-20-compliant GORA token, enhancing liquidity and multichain functionality.
To celebrate the merger, Gora will partner with Qoda Finance, a peer-to-peer lending protocol on Arbitrum, to pilot unvested token lending on the Arbitrum network. This initiative will explore the potential for decentralized autonomous organization (DAO) contributors to obtain liquidity against their future token allocations, utilizing Gora’s collateral price feeds and RociFi’s credit scoring systems.
The strategic merger between Gora and RociFi is a significant step forward in addressing the core challenges of DeFi. By combining their strengths, the DeFi Risk Oracle emerges as a powerful tool to enhance asset valuation accuracy and provide insights into individual credit risks, ultimately leading to greater transparency and efficiency in DeFi operations.