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Chronicle, the first oracle on Ethereum, has successfully secured a $12 million seed round to enhance its capabilities in the evolving real-world asset landscape.
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This funding round, spearheaded by Strobe Ventures, underscores the growing interest in oracles as pivotal components of decentralized finance (DeFi).
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Co-founder Niklas Kunkel emphasized their focus on attracting “higher quality, long-term players,” reflecting a strategic approach to partnerships that ensures sustainable growth.
Chronicle raises $12 million to expand its oracle capabilities for decentralized finance, targeting real-world assets with a unique focus on transparency and verifiability.
Chronicle’s Strategic Seed Round Aims to Drive Innovation in Real-World Assets
Chronicle, recognized as the first oracle on the Ethereum blockchain, has announced a significant milestone by securing a $12 million seed round. This funding, led by Strobe Ventures and accompanied by notable investors including Galaxy Vision Hill and Brevan Howard Digital, aims to accelerate the development of its services as the demand for real-world assets (RWAs) continues to rise. The company’s initiative highlights the increasing recognition of oracles as crucial to the infrastructure of decentralized finance (DeFi).
Expanding Beyond Initial Use Cases
Initially created to support the MakerDAO ecosystem, Chronicle’s evolution into a standalone entity allows it to broaden its use cases. As articulated by Kunkel, “Back then, there were no oracles… We needed to make our own oracle.” Chronicle’s innovation, known as Scribe, assists in managing the high computational costs associated with consistently updating oracles. With the official launch of its public product in September 2023, the focus on verifiability and transparency becomes a central theme in its operations.
The Importance of Verifiability in Decentralized Finance
Chronicle distinguishes itself from competitors by emphasizing verifiability. Each validator within the system shares raw data and computation processes, fostering transparency. “It changes oracles from being this black box… to being just as transparent as blockchains,” Kunkel remarked. This innovative approach not only aligns with the core principles of DeFi but also reassures users regarding the integrity of pricing information.
Integrations with Leading Platforms and Future Aspirations
With over $20 billion processed in total value, Chronicle has successfully integrated with various platforms including credit providers like Centrifuge and leading DeFi protocols such as Euler. As Chronicle looks toward expansion, Kunkel noted the growing trend of tokenized assets, a movement he emphasizes as being far from fleeting. The projection of $20 billion worth of on-chain RWAs signifies a booming market ripe for further exploration.
Addressing Trust Issues in Tokenized Assets
Despite the promising growth, Kunkel highlighted that many on-chain products lack complete trustlessness. He stated, “Users are as reliant on issuers and custodians to be truthful about their holdings.” In response, Chronicle is devising solutions to gain privileged access to the underlying reserves of these RWAs. This strategy aims to enhance the trustworthiness and transparency of DeFi protocols accessing real-world assets.
Looking Ahead: Chronicle’s Growth in the RWA Sector
Kunkel expressed optimism about Chronicle’s potential to significantly impact the RWA sector, predicting that it may surpass DeFi within the next year. As institutions like BlackRock and Fidelity increasingly navigate this market, Chronicle is positioned to provide the necessary infrastructure for trustless transactions. This pivot aligns Chronicle not only as a key player within the DeFi ecosystem but also as a bridge to traditional finance in an evolving digital landscape.
Conclusion
Chronicle’s recent funding and strategic vision underscore the importance of oracles in bridging the gap between DeFi and traditional finance. By focusing on transparency and verifiability, they are setting the stage for sustainable growth and innovation. As Kunkel aptly summarized, the original intent of such technology was to provide trustworthy data in a landscape full of uncertainties, aiming for a future where DeFi can confidently integrate real-world assets.
