Why current oracles are broken? | Stanislaw Koper | ETHWarsaw [4]

Hello everyone. My name is Stash Stanus Copper. I'm the head DJN at Canary Protocol. You probably know me walking around as that goofy guy in the funny hat. And basically, I'm going to be explaining to you why we think Canary oracles are broken in the space right now and especially for real world assets.

So, we've seen a huge shift on onchain finance. Right. Beginning of the year, we had $1 billion of one of RWAS. Now from uh RWXYZ we have 28 billion. So we have seen the beginning of the huge growth of protocols chains we have Midas superstage centrifuge securitize and yesterday we had tempo announced.

So now we need to create the rails for those projects to have the access from the institutions to come directly on chain. So what's the big problem? The oracles that we have today is are broken. So essentially the consensus modules that were designed were for crypto assets themselves. They're not designed for real world assets.

Real world assets require a completely different type of infrastructure to ensure guarantees for these huge institutions to pour in trillions of dollars. We have the single points of failures from bridges. We've had hacks. We had the nomad hacks for 80 millions. We had key poisonings.

We had malicious man and middle attacks. So essentially also the oracles lack speed, security and the integrity for these projects to come on board. As a result we have custom info being built by these teams. So often tokenized treasury projects will have to create the entire info for their pricing systems security all over again. So that is really annoying because now you have to make sure that everything is built custommade and that fragments liquidity.

We also know that proof of reserves as it stands today is a lie. You're trusting someone being like, "Hey, I have $25 million in reserves." Do you really? But with Canary, we'll be able to Oops. I think yes.

Yeah, we will be able to cryptographically proof proof of reserves are actually happening. And as well as the guardrails that exist with traditional oracles can potentially cause prices changing without any issues as well as the validators are a reliable are your source unlike what we see is taking the source directly from let's say institutions like wintermute or a bank for example it's not going to be a bank so why this matters so we demand better asurances pricing compliance right the traditional Oracles cannot give you certain compliances that these regulatory bodies need to directly come on chain and existing oracles often are slow and unauditable. Yes, there are many oracles out there that have created uh new real world asset focus on real world assets. However, we need to make sure that is done correctly. It's best to be a specialist in one certain area than the jack of all.

And according to PWC, there's 40 trillion worth of assets ready to come on chain, but they can't because if all those assets directly came on chain right now, it would freeze everything and we would have issues. So this is where we come in Canary Nest. So we are creating the financial internet of the future. And how did we start this? We didn't start with the Oracle first.

First of all, we created an interoperability layer on top of layer zero, a digital verify network. This all runs in a trusted execution environment for tamperroof verifications to ensure that your message from chain A to chain B will be verifiably true and through our consensus of K ofN of our nodes as well as SSL pinning to prevent man-in-the-middle attacks and poison. So this also ensures that we have institutional curators on every single in every single pipeline because trusting these people are also having their reputation on the line and as well as something that we will do is post cryptographic attestations directly on chain to prove that this was the price from the source. Oh, and I forgot to mention that we are already securing 10 billion dollars of assets within our DVN network. So, so protocols like Etheri, Morpho have decided to use our DVN without us even approaching cuz our DVN stack is the fastest in the world after comparing every single one that exists today to 10 to 15 times.

Plus, this runs in this tamperproof isolated seal. So, here is our Canary Nest Oracle. It runs in millisecond latency for real-time data markets. We have hardware attested data with TE and SSL pinning and our K of N sourcing is directly from institutional curators. So you don't have to rely on validators themselves and then we have current key compliance trails and then the institutional creators for the have those standards because these curators themselves will be setting those standards and then we will be doing that with them.

It's not just another oracle. It is the institutional grade layer for NAV collateral and credit proof within the pie. We are already powering $10 billion of assets, 100% of uptime and over a dozen adapters and we currently do 5% of all layer zero volume through our DVA. So we have created provable institutional grade infrastructure that now we can build this real world asset oracle and how does Canary compare to the current oracles today. So we have the TE integrations, adaptive guardrails, the K of aggregated consensus, institutional creators, and we have the latency periods of 1 milliseconds and provable TSL.

And I thought this was going to be a 15-minute uh chat. I didn't realize I had half an hour. So I would rather have an open conversation afterwards because I prefer having these kind of discussions. So vision ahead, we are creating the global rails for onchain finance with a seamless flow of tokenized assets with verifiable settlement. And the key issue is like we're not trying to compete with other oracles.

We are not going for your altcoins, memecoins. We're creating a new standard for specifically RWAS and your blue chip assets like Bitcoin as Ethereum. So like essentially for us we want to make sure that these institutions will have all they need from day one using our protocol. Something that we are excited to announce is the combinary ambassador program where we're partnering where we're partnering with co to create an entire educational program where we will derive courses of how to become a leader in the space to be an outreach of our canary. Essentially, we don't want no essentially posting.

This is spam. We're creating an entire educational sphere that people will be able to go out and educate themselves for. Um, thank you for listening and I'd rather open up to now to have a conversation with the audience about what they need about oracles and the data that flows. Does anyone have any questions? Yes.

[Music] So thank you for your presentation. Um just for context. So I think when um you know people who have been around the blockchain industry for a little while think about oracles it's usually um because there's a price feed or something fueling some kind of um like perpetuals futures market or something like that. Um is that the kind of institutional uh use case that you're seeing or like what are the like can you give me an idea of the repertoire of the the kind of information that these institutions need in Oracle for?

Yeah, for sure. So right now like let's say we have an protocol going on like let's say a p per petrol decks right we need to ensure that none of this data is being manipulated because in the future we're going to have much more sophisticated attack so for example the something I didn't mention earlier is that we leverage IGEN layer for a predispute protocol just in case if anything did happen and go past these guard rails like the T like for example you can't essentially manipulate our TD everything that is in there what happens comes out is fully verifiably and secure. And that's why the institutions want more than just a price feeding, more than just validators. They need to have multiple guard rails. So, for example, in an event that you were able to manipulate one of the price feeds, right?

Our our system will detect that and will just completely exclude that price feed from let's say that institutional curator. So, the project using our pricing won't be affected. So, they need tamperroof verifiability. That's what everyone they want to have that guarantee that that price is going to happen at that moment and as well that we can offer that 1 millisecond speed is that we perpex integrated with real world asset trading have that advantage over other oracles in there. So we're not trying to take the space from traditional crypto assets

and the um you said that uh there have been a couple of institutions um who have adopted your um your protocol already.

Congratulations. really terrific news.

Um, that suggests to me that maybe you weren't aware that they were going to do it. Like was it a surprise to find them integrated?

So, so we have a small team. There's so much being and like outreach we can do. So, uh, we did the research out there in all in the DVN space. So, the standard implementation is in Gasolino. We created it all from scratch bespokely in Go.

So now we have proof to say that our T can scale sorry our DVN can scale to billions of messages in a second in event someone tried to do a spam or attack as well as we have those cryptographic proofs to prevent these institutions moving these largest amounts of money right so when you're bridging from chain A to chain B there's potentially maybe it could get attacked right but our attestations protect that

and is there like a um uh SDK K for the API or something that kind of defines those

releasing everything very soon. It's because um

there's some things we're about to announce very soon. So, we only literally just started doing our outreach and going public. So, right now it's been mainly B2B, but um there's some very exciting announcements for some of the biggest protocols in all of the crypto space who are about to use our tech stack. So, we're delivering that institutional grade interoperability. So another thing that people should think about every bridge is an oracle and not every oracle is a bridge.

So more about that will be in the future but that's what we're building is the institutional grade finance that hasn't existed for IWAS and we're proving it as when we launched on day one apologies we had $5 billion in TVs. So, we've built something that's never existed and in in actual fact we have no competitors that do what we do.

Wonderful. Thank you very much.

Any other questions?

Uh what about the government's chain links tries to solve it use it the token governments and how it will work in the canary? So do you mean how are we differentiating from chaining?

Yeah.

So well chain everyone knows chaining. Chain link is the OG. It has the partnerships right and every major. So one thing people may not realize is many protocols by default use chain link and then you'll have let's say other oracles say these protocols are using our part our oracle as well. They're not.

If chain link goes down they'll use the alternative oracle as well. So what we're defi changing is we are only using protocols that will actually integrate us and use as a first party oracle right. So is that does that answer your question?

And then what was the second part to it? Something about token I I don't understand.

Yeah. Like uh chin link use of uh government's token to make decision.

Yeah. uh and how it will work in the canary like because the oracles it is like centralized history in the crypto and they use tokens to make it more eventually I can't obviously you can't say that we will may not have a token but obviously at the end goal is to have a decentralized process over time and make sure it's done properly Okay.

Any other questions?

Nope. No. Okay. Thank you very much. Oh, yes.

Do you have at the moment any open source code or where I can read about the protocol because I have visited your site but I can find

Yeah, we're releasing all of our documents and kits very soon because the DVN architecture itself every single DVN is essentially closed source because that's the magic pipe source that makes us the best because we have created it in a bespoke way but uh the other parts of it will be releasing.

Okay. So that's the magic and now you will be releasing it. Yes, I understand.

Yeah, we'll be releasing. Well, no, the DVN will always be closed source. Every single company, even Google, their DVN is closed source. So, okay. All the other aspects will be open source and available.

Okay. Okay. Thank you.