With the popularity of multi-chain ecosystems, DeFi protocols are increasingly involving cross-chain collateral, settlement, and clearing.
However, when cross-chain data lacks reliable verification, it can pose significant risks to financial safety and compliance. Traditional solutions often rely on centralized oracles or custodians, which contradicts the original intention of decentralization.
Lagrange's SQL co-processor resolves this issue effortlessly.
Developers can call financial data such as collateral rates and liquidity distribution across different chains through SQL queries, and the co-processor performs calculations off-chain, accompanied by zero-knowledge proofs. Validators on-chain can verify the proof to confirm the authenticity and completeness of the results. This not only improves efficiency but also ensures complete data transparency.
A typical case is the application of Frax/Fraxtal, where they use the co-processor to transparently distribute veFXS incentives, allowing users to trust the accuracy of the data.
For cross-chain finance, this mechanism signifies a fundamental shift from "trust-based" to "proof-based" reliance. In the future, as compliance requirements become stricter, this verifiable mechanism may become a necessity for financial protocols.
