Band Protocol V3 Testnet Advances Cross-Chain Oracle Network

Estimated reading time: 4 minutes

• Band Protocol launched phase two of its Oracle v3 testnet on April 30, 2025.
• The update enhances cross-chain capabilities and technical reliability ahead of the mainnet launch in Q3 2025.
• Notable features include integrations with Cosmos’s IBC-Hook and collaboration with Axelar Network.
• The testnet introduces improvements for developers, including enhanced telemetry and automatic gas settings adjustments.
• A custom mempool upgrade was also announced to boost throughput and security.

Band Protocol has reported further progress in its effort to deliver a decentralized oracle solution, announcing the launch of phase two of its Oracle v3 testnet. The phase two rollout, which began on April 30, 2025, aims to improve the protocol’s cross-chain capabilities and technical reliability ahead of a planned mainnet release in the third quarter of 2025[1].

The latest testnet phase builds upon updates and insights from Band v2 and the initial v3 deployment. This phase introduces more data tunnel routes, which extend oracle services to a broader range of blockchain networks. Key features include support for interchain contract querying through Cosmos’s IBC-Hook, integration with Router Protocol and Ethereum Virtual Machine (EVM) chains, as well as a collaboration with Axelar Network to provide cross-chain verified feeds[2].

These measures address the increasing need for interoperability as blockchain infrastructure diversifies.

Technical changes in v3’s second phase include several improvements for developers. Updates involve Cylinder’s capacity to execute standalone commands, using block time to help ensure more consistent signal submissions, enhanced telemetry for tracking core modules, and automated activation of Threshold Signature Scheme (TSS) groups to improve validator participation. The Yoda transaction orchestrator now modifies gas settings automatically, which is intended to reduce failed transactions and improve user experience[3].

On May 29, 2025, Band Protocol announced a custom mempool upgrade for the v3 testnet. The new custom mempool lane system is designed to increase throughput and security, enabling the network to process more transactions with higher reliability[4].

In addition, the second phase broadens integration efforts. Alongside working more closely with the Cosmos ecosystem, Band Protocol has expanded support to networks including Router Protocol and Axelar. This wider integration aims to support multiple decentralized finance (DeFi) and cross-chain projects[5].

The expanded reach comes at a time when demand for verified, real-time data is growing within complex DeFi applications.

Band Protocol intends to move the improvements from the v3 testnet into production with a mainnet launch expected in Q3 2025. The release is expected to offer users and developers the performance, security, and interoperability updates introduced in the testnet cycle[6].

Band Protocol is developed on the Cosmos SDK and operates BandChain, a cross-chain oracle platform. This foundation allows developers to create custom oracle scripts that deliver data to decentralized applications and smart contracts. The protocol uses the BAND token for network security through Delegated Proof-of-Stake consensus, and allows token holders to participate in network governance[7].

As the decentralized oracle sector continues to evolve to support data feeds for multiple blockchains, Band Protocol’s v3 testnet represents a further step toward providing integrated, cross-chain solutions.

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1. https://blog.bandprotocol.com/introducing-band-oracle-v3-testnet-phase-2/
2. https://www.tradingview.com/news/coindar:b18a71f2f094b:0-band-protocol-to-start-band-oracle-v-3-0-testnet-phase-2/
3. https://blog.bandprotocol.com/introducing-band-oracle-v3-testnet-phase-2/
4. https://www.tradingview.com/news/coindar:b18a71f2f094b:0-band-protocol-to-start-band-oracle-v-3-0-testnet-phase-2/
5. https://blog.bandprotocol.com/introducing-band-oracle-v3-testnet-phase-2/
6. https://blog.bandprotocol.com/mempool-upgrade-band-oracle-v3-testnet2-1/
7. https://www.tradingview.com/news/coindar:b18a71f2f094b:0-band-protocol-to-start-band-oracle-v-3-0-testnet-phase-2/