Optim x Charli3 Partnership

Optim Labs
2 min readMar 30, 2022

Optim, Cardano’s innovative yield aggregator and product platform, is proud to announce its partnership with Charli3, the premier oracle solution on Cardano. Our technical teams are working together to ensure efficient integration and compatibility for core products as well as custom oracle feeds to realize performance and security needs.

Charli3 is the leading Plutus native provider of oracle solutions for the Cardano ecosystem. An oracle is a service that brings off-chain data into the blockchain to increase the utility and reliability of smart contracts by providing accurate and verifiable decentralized data streams from the outside world. Optim’s Yield Aggregator will be able to use Charli3’s oracle price feeds to better respond to the volatile price movements of digital assets, enabling our Strategy Vaults to react to market conditions in real time.

With an effective oracle service, Optim’s protocol is less susceptible to price discrepancies among DeFi protocols in the ecosystem and can better take advantage of profitable yield streams while waiting for liquidity pool smart contracts to find proper market equilibrium.

Oracle solutions will also benefit Optim’s recently announced Liquidity Bond Market yield product in its current and future iterations. Data streams on Stake Pool performance metrics will enable the protocol to uphold quality standards defined by our benchmarking to ensure SPO bond lenders receive an optimal and expected return on their investment. These performance evaluation metrics could be used to prematurely end contracts that fall short of meeting standards if such a case were to arise.

In the initial launch version of this yield product we are limited to only writing bond contracts in the ADA base token, but by using Charli3’s live price feeds a wider range of financial instruments, such as stablecoin or native token backed bonds, will be possible in the V2 release.

Additionally, in order to efficiently handle liquidations for our eventual Leveraged Yield Farming product, Optim will aggregate the best oracle feeds in the Cardano ecosystem for reliability and redundancy purposes, which are crucial for protocol performance. Charli3, as Cardano’s premier native oracle solution, will play an integral role in this aspect of Optim’s backend system.

Optim Labs is excited for this partnership as it will help us bring more powerful financial instruments and yield products to market. We thank Charli3 for their diligent efforts building a native Cardano oracle service for the ecosystem and look forward to a long and fruitful symbiotic relationship.