Band Protocol has been deployed on the Celo Alfajores L2 Testnet, a major upgrade for DeFi development. By integrating its decentralized Oracle technology with Celo’s scalable Layer 2 network, Band is paving the way for secure, data-driven applications.
The move aligns with Celo’s drive for financial inclusion, giving developers a powerful infrastructure to build on.
Why Celo chose Band Protocol like Oracle instead of Chainlink
Decentralized Oracle solutions like Band Protocol .cwp-coin-chart svg path { Stroke: ; line width: ; }
Price
Trading volume in 24 hours
Last price movement over 7 days
are the backbone of real-time data in blockchain networks. DeFi applications (think lending platforms, trading bots, and GameFi projects) depend on recent, accurate data to operate smoothly.
Band eliminates middlemen by aggregating price feeds for assets such as BTC, CELO, DAI and ETH, abandoning centralized data sources to minimize risk and create a more secure ecosystem. This setup gives users and developers a clearer view, thereby building trust in blockchain technology.
1/ I’m excited to share that Band Protocol has been integrated into @Celo L2 Alfajores Testnet, combining Celo’s vision for global financial inclusion with Band Oracle. Let’s see what this means for the DeFi ecosystem.
Full details:
– Band Protocol (@BandProtocol) December 11, 2024
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Summary 
With the move from a standalone Layer 1 to an Ethereum-compatible Layer 2, Celo deepens its Web3 ties and broadens its reach in the crypto ecosystem. Band Protocol’s Oracle technology fits perfectly here, providing the precise data DeFi projects need while aligning with Celo’s drive for sustainable and inclusive innovation.
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Technical presentation of the BAND – CELO integration
The implementation of Band Protocol on Celo Alfajores L2 focuses on simplicity and efficiency. Developers can now integrate Band Standard Reference Contracts into their dApps, unlocking real-time cross-chain price feeds. Here’s how the process works within the Alfajores Testnet ecosystem:
- Data request: Celo dApps requests data such as BTC/USD rates through Oracle from Band.
- Data aggregation: Band Oracle gathers data from multiple sources (e.g. Binance, CoinMarketCap) and processes it using BandChain’s consensus mechanism.
- Data Relay: Verified data is sent to reference contracts on Celo Alfajores L2.
- Reading symbols: Developers retrieve the requested data from the reference contract to use it in their dApps.
- Real-time update: The dApp uses the data for price updates or automated trading functions.
Key Benefits of BAND Protocol for Developers and Users
Reliable and decentralized price feeds
By leveraging the Band Protocol, developers on Celo L2 have access to accurate, decentralized price data for a growing list of assets. This ensures reliability and mitigates risks associated with single points of failure, thereby promoting trust in the network.
Improved security and resilience
Band Oracles operate with decentralized infrastructure, blocking manipulation and strengthening the security of DeFi systems. This naturally aligns with Celo’s vision of a regenerative digital economy, built on infrastructure that developers can trust without hesitation.
Scalability for financial inclusion
With Celo’s scalable Layer 2 technology and Band’s Oracle infrastructure working in tandem, developers have the tools to create financial products that are both affordable and efficient. This is a step towards Celo’s broader goal of making financial services accessible to neglected parts of the world.
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What future for Band Protocol and CELO?
The integration with Band Protocol marks a key milestone as Celo prepares for the launch of its L2 mainnet. Future goals include further optimization and adding more assets to Band’s data feed library. As the network grows, developers and users find themselves at the edge of a streamlined and secure ecosystem.
Combining Oracle technology with a Layer 2 network built for scale signals a shift toward a DeFi space that values accessibility and efficiency. This collaboration is just the beginning of an overhaul of what decentralized finance can achieve.
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