Oracles play a crucial role in decentralised finance by connecting blockchain networks with real-world data; yet, precise asset appraisals and thorough credit assessments continue to be difficult to achieve.

In order to overcome DeFi's difficulties with asset value and risk assessment, Gora and RociFi combine to develop the DeFi Risk Oracle, combining their capabilities in data feeds and credit scoring.

In decentralised finance (DeFi), having access to complete and accurate data is essential to preserving safe and equitable financial systems. Because blockchain networks are intrinsically insulated from real-world information, oracles serve a vital role in bridging this gap.

The DeFi industry still has challenges in maintaining accurate asset assessments, which are necessary for financial operations like loan management, even with the incorporation of oracles.

Furthermore, the absence of specific, individualised credit data complicates risk assessments, which can hinder the development of customized financial products and governance systems, highlighting the need for improved mechanisms to bolster transparency and efficiency in DeFi operations.

A symbiotic union with the goal of accelerating innovation

In a move to innovate the DeFi landscape, Gora — an oracle platform built on Algorand — and RociFi, a oracle provider of on-chain credit scores from Ethereum Virtual Machine (EVM) wallets, announced their strategic merger.

The union combines Gora’s capabilities in providing diverse data feeds across blockchains with RociFi’s specialized credit and risk scoring protocols to introduce the DeFi Risk Oracle.

Oracles are essential in DeFi ecosystems, serving as bridges that fetch and verify real-world data for blockchain networks, which are otherwise closed systems.

With the DeFi Risk Oracle, the merger aims to forge a comprehensive solution for DeFi applications.

Introducing a solution for comprehensive DeFi operations

Cointelegraph Accelerator participant Gora operates as a multichain oracle network and offers tailored data feeds crucial for various on-chain operations.

RociFi’s role complements Gora’s features by providing a protocol that assesses the creditworthiness of blockchain wallet addresses based on their transaction histories, which is instrumental in determining personalized borrowing terms and risk assessments.

Born from the merger, the DeFi Risk Oracle integrates Gora’s data feeds with RociFi’s credit scoring expertise to deliver:

Reliable collateral price feeds: Gora’s oracles provide accurate price feeds, which are essential for DeFi lending platforms where accurate pricing of assets is crucial for calculating loan-to-value ratios and health factors of loans.

Wallet-level credit data: RociFi’s credit scoring features allow for a more nuanced risk assessment by evaluating the credit history tied to individual blockchain wallet addresses, enhancing risk assessment capabilities.

Projects integrating the DeFi Risk Oracle gain real-time access to comprehensive wallet information, enabling:

Sybil-resistant governance: By verifying voters’ uniqueness and reputation, the oracle prevents manipulation and ensures fairness in decentralized voting systems.

Customized borrowing terms and targeted airdrops: Designed to improve user retention, these features aim to effectively reward the most active users within projects’ ecosystems.

Transparent protocol health monitoring: Offering insights into the overall risk of DeFi protocols aids stakeholders in making more informed decisions.

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 utilize a seamless conversion to GORA tokens on a 1:1 dollar value basis, allowing them to benefit from Gora’s offerings.

The benefits include participating in node operation and staking systems, which offer competitive annual percentage returns (APR).

Increasing the use of DeFi and multichain

Furthermore, by utilising Gora's existing network, the partnership is expected to shorten RociFi's product development deadlines.

Additionally, it enhances liquidity and multichain capability by laying the groundwork for the introduction of the Gora.Fi platform and the ERC-20-compliant GORA token.

To commemorate the merger, Gora and Qoda Finance, an Arbitrum peer-to-peer lending platform, will work together to test unvested token lending on the network.

The effort will use RociFi's credit assessment methods and Gora's collateral price feeds to investigate the possibility of providing contributors to decentralised autonomous organisations (DAOs) with liquidity against their future token allocations.

The strategic union of Gora and RociFi represents a step forward in resolving the fundamental issues facing DeFi.

Combining the advantages of both systems, the DeFi Risk Oracle appears as a tool to improve the accuracy of asset assessment and offer details on specific credit risks, suggesting increased openness and effectiveness in DeFi operations