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BAND Protocol: Can latest tech devs help BAND break Chainlink, Maker oracle domination?

By Raphael Sanis

15:46, 3 November 2022

Band Protocol's logo in front of a price graph
Band Protocol provides oracle services for Loopring, Injective, and CREAM Finance – Photo: Shutterstock

A new upgrade for the Band Protocol (BAND) has been proposed, which, if voted by the community, should improve the developer experience.

BAND, the native token for the blockchain oracle, has soared, as token holders vote on whether to pass this upgrade.

Band Protocol’s total value secured (TVS) has also rocketed. But it is still far from its rivals Chainlink (LINK) and Maker (MKR).

BAND’s new upgrade

Band Protocol, which provides services to Injective, Loopring, CREAM Finance, and others, unveiled its mainnet upgrade plans on 3 November. It is set to improve the throughput for the oracle, along with other developer upgrades.

The community will have until 17 November to vote for Band Protocol’s version 2.4 upgrade.

There is so far a positive response from token holders, as 100% of voters are in favour of the protocol, as of 3 November. But there has only been a 5% turnout from BAND holders, at the time of writing.

If voted for, the estimated date that the upgrade will be implemented on the oracle is 21 November.

DOGE/USD

0.14 Price
-1.920% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

67,552.90 Price
-0.370% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,499.60 Price
-0.050% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

181.36 Price
-1.160% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

The voting activity has led to some bullish price movements for BAND. After closing on 2 November at $1.13, it rwas trading at $1.72 at the time of writing. It was up 50% on the previous 24 hours, as of 3 November.

Chainlink’s dominance

But Band Protocol still has a long journey ahead before it challenges titans in the blockchain oracle market.

At the time of writing, Chainlink is dominating the market, with its $12.bn TVS, accounting for 46% of all oracles, according to DeFi Llama. In comparison , Band Protocol held only 1.7%.

But Chainlink’s TVS has been losing influence throughout 2022, while other competitors, such as Maker and WINkLink, have gained.

Similarly, Bond Protocol’s TVS has increased slightly in recent weeks. It climbed from $358m on 21 October to $451m on 3 November, a surge of 25%.

Markets in this article

BAND/USD
Band Protocol / USD
1.4644 USD
-0.0278 -1.910%
LINK/USD
ChainLink / USD
14.68142 USD
-0.39501 -2.680%
MKR/USD
MKR/USD
2881.63 USD
37.28 +1.330%

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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