“3,3” fame OlympusDAO integrates Chainlink for its no-loss raffles 🚨 This article is 3 years old...
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“3,3” fame OlympusDAO integrates Chainlink for its no-loss raffles
Chainlink VRF works by combining block data that is still unknown when the request is made with the oracle node's pre-committed private key to generate both a random number and a cryptographic proof.
2 min read
Updated: Feb. 20, 2022 at 2:37 pm UTC
Photo by Spencer Davis on Unsplash
OlympusDAO has integrated Chainlink VRF on Ethereum mainnet, opening access to a verifiably random number generator that is used to choose winners of our no-loss raffle on the OlympusDAO protocol.
“This helps assure users that the raffle is provably fair and transparent, building a more fun and exciting staking experience for ohmies participating in the recurring (3,3) Together raffle,” the team said in a note to CryptoSlate.
OlympusDAO and the (3,3) mania
Operated by a decentralized autonomous organization (DAO), OlympusDAO aims to become a decentralized financial reserve protocol for the entire blockchain ecosystem.
OlympusDAO ensures that each OHM will always be backed by at least one dollar in value by holding a certain amount of MakerDAO’s DAI within its DAO treasury—although the token can venture upwards as a floating currency that is subject to the whims of the free market.
The protocol accomplishes this by changing its supply by either minting or burning tokens based on OHM’s price. If the token price drops beneath a dollar, creating a surplus for the risk-free treasury value relative to OHM’s supply, the protocol will buy back and burn tokens using treasury funds until the market price returns to one dollar.
If the price of OHM exceeds a dollar, the protocol will mint and sell tokens on the open market to buy reserve assets and increase its treasury funds.
OlympusDAO participants can also stake their tokens on the platform to receive sOHM, or staked OHM, which can always be redeemed for an equivalent amount of OHM, as the supply of sOHM stays at a 1:1 ratio to the OHM token.
Whenever the protocol mints more OHM and sells it on the open market, an equivalent amount of sOHM is distributed to stakers in a supply rebase that happens at 8-hour intervals, resulting in continuously compounded rewards that can be redeemed for OHM at any time.
Alternatively, stakers can delegate their staking rewards to the (3,3) Together raffle—a no-loss raffle that pools staking rewards together and rewards 3 lucky winners who split the total sOHM amount.
How Chainlink helps
In order to help ensure provably fair drawings for the raffle, OlympusDAO needs access to a secure random number generator (RNG) that any user could independently audit. However, RNG solutions for smart contracts require several security considerations to prevent manipulation and ensure system integrity.
“After reviewing various solutions, we selected Chainlink VRF because it’s based on cutting-edge academic research, supported by time-tested oracle infrastructure, and secured through the generation and on-chain verification of cryptographic proofs that prove the integrity of each random number supplied to smart contracts,” the team said.
Chainlink VRF works by combining block data that is still unknown when the request is made with the oracle node’s pre-committed private key to generate both a random number and a cryptographic proof.
The OlympusDAO smart contract will only accept the random number input if it has a valid cryptographic proof, and the cryptographic proof can only be generated if the VRF process is tamper-proof. This provides our users with automated and verifiable assurances directly on-chain that raffle drawings are provably fair and were not tampered with by the oracle, outside entities, or the OlympusDAO team.
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Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
