Executive Summary

Ojo is a decentralized price oracle explicitly designed for the ecosystem, providing support for a wide range of crypto assets within the Interchain. This solution enables secure and reliable interchain communication by delivering precise price data sourced from authenticated centralized and decentralized data sources. Initially, Ojo will prioritize offering highly accurate and dependable price feeds. Thanks to its Smart Oracle functionality, Ojo can support assets that other oracles may be unable to accommodate. Drawing from an extensive catalog of on and off-chain sources, OJO utilizes advanced security mechanisms to safeguard the integrity of the provided data.

About the Project

Vision – Ojo aims to become an Oracle for the interchain.  It offers secure and robust interchain communication for accurate price data.

Accurate price data is crucial for a leverage protocol sensitive to even minor price fluctuations. To enhance Oracle security, the team has implemented advanced features, drawing interest from numerous developers in the field. Serving as a data hub for ecosystem-native data, Ojo will provide a diverse range of custom-built data feeds tailored to meet the specific requirements of its users. The creation of Ojo aims to provide accessible, reliable, and trustless data feeds essential for supporting the expanding web3 data economy.

Although blockchains can securely maintain records shared on-chain, they cannot independently verify the integrity of off-chain data, such as live price data for various assets, without relying on an external entity. The Oracle problem highlights the challenge of blockchains in obtaining or transmitting data to external systems without external assistance. Ojo’s foundation rests on a distributed network of validators, each contributing votes on the prices disseminated through its feeds. By operating on a Proof of Stake blockchain, Ojo aligns validators’ financial incentives to provide the most accurate prices. This approach ensures resilience even in the face of individual price feeders malfunctioning or potential manipulation.

Features

• Ecosystem – Ojo is compatible with all IBC, EVM, and MoveVM chains. Once deployed onto these ecosystems by the Ojo team, any protocol can access data trustlessly. Presently, Cosmos price feeds are accessible on multiple chains.
  
  
• Smart Oracle – OJO draws from a comprehensive array of on and off-chain sources and employs advanced security mechanisms to ensure the data’s integrity. One of its key features, the Smart Oracle, is intricately designed to counter market manipulation, enhancing resilience and reliability.
  
  
• Trustless – Ojo operates as a decentralized Proof of Stake oracle chain driven by a distributed network of validators. These validators collectively vote on the prices utilized in Ojo’s price feeds. Validators who contribute the most accurate prices are rewarded, while those submitting inaccurate prices face penalties. To ensure robust participation and decentralization, validators failing to vote are subject to being jailed, resulting in a substantial portion of their stake being slashed and their removal from the active set. These measures significantly mitigate Oracle’s risks for protocols relying on its data feeds.
  
  
• Use Case – While Ojo’s primary objective is initially to deliver precise and dependable price feeds for the Interchain Ecosystem, it also intends to expand its services by developing a diverse array of data feeds tailored to the specific requirements of developers. This could encompass price feeds for various crypto-assets, traditional financial products, social data sourced from popular web2 applications, etc.

Market Analysis

Blockchain technology has seen remarkable growth, valued at $1.6 trillion, with optimistic projections suggesting further expansion. Oracles play a crucial role in the crypto landscape by sourcing, executing, and verifying data from external centralized sources before submitting it to smart contracts, addressing a significant challenge in the crypto market. With the increasing crypto market, the demand for oracles is expected to rise. According to CoinGecko, the market capitalization of oracles already stands at $14B.

Competitive Landscape – The oracle market is dominated by established players such as Chainlink and Pyth Network, which hold a substantial market share. Additionally, smaller competitors like API3 and Band Protocol are operating in the market.

Ojo – Given the evident demand for a highly secure oracle among DeFi developers, Ojo will initially prioritize providing the most accurate and reliable price feeds. Leveraging Ojo’s Smart Oracle, it can support assets other oracles cannot, offering secure and robust interchain communication for accurate price data from various authenticated centralized and decentralized sources. Many existing oracles primarily focus on providing price data for ETH, overlooking numerous smaller yet significant assets within the Cosmos Ecosystem, such as OSMO, JUNO, and KUJI. Ojo caters to this problem and is currently deployed on the Cosmos ecosystem, becoming its native oracle. It aims to expand to become the oracle for interchain communication, including EVM and MoveVM chains.

Token

Ojo’s native token operates on an inflationary model, reaching a hard-cap supply. The tokenomics strategy aims to incentivize early staking until Ojo’s data relaying evolves into a trustless system, where validators require a minimum token amount to receive rewards for relaying information. The token serves the purpose of staking and rewarding participants. More details will be revealed later.

Ojo Team

Adam Wozniak serves as the founder and CEO of Ojo, bringing valuable experience and expertise gained from his tenure as a core developer at Umee. He leads a team of seasoned professionals. Additionally, Brent Xu, the founder of Umee, serves as one of their advisors.

Conclusion

Ojo offers a pioneering solution to the decentralized oracle problem, aiming to overcome existing limitations by delivering real-time, content-rich information with rapid finality. The protocol prioritizes the provision of trustless and reliable data in a decentralized manner. Currently operational within the Cosmos System, Ojo has plans to expand its reach to other EVM and MoveVM chains, underscoring the project’s forward-thinking vision. Ojo has a tremendous use case, making it a promising project.