Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Chainlink’s (LINK) low-latency oracles will be integrated with the decentralized exchange (DEX) GMX following a successful governance proposal aimed at delivering more “granular” real-time market data to GMX v2.
The voting concluded on April 25 at 12:00 am UTC, with over 96% of the participating GMX tokenholders casting their votes in support of the proposal.
The new Chainlink oracles — developed with contributions from GMX core team members — were introduced to enhance the functionality of perpetual DEXs and price-sensitive trading on GMX, as explained by the proposal’s author.
The @GMX_IO community has officially endorsed a proposal to incorporate Chainlink’s new low-latency oracles as the launch partner in an on-chain vote with 96.28% approval.
This integration will bolster both the security and user experience of GMX’s derivatives protocol. https://t.co/sh1tLDLtps— Chainlink (@chainlink) April 25, 2023
Furthermore, the low-latency oracles are reported to enhance security, further decentralize the protocol, and improve user experience, according to Johann Eid, the head of integration at Chainlink Labs.
While these new oracles employ the same oracle node operators and data aggregation methods utilized in existing Chainlink reference feeds, Eid noted that the new oracles gather data at a “higher frequency.”
“The new Chainlink low-latency oracles will utilize the same set of oracle node operators and multi-layered data aggregation mechanism currently deployed in existing Chainlink reference feeds, but operate via a pull-based mechanism to meet the speed requirements of DeFi derivatives.”
Eid clarified that the enhanced security will arise from the low-latency oracles offering a “strong degree of tamper-resistance when settling user trades.”
Another Twitter user, Aylo, informed their 62,600 followers on April 8 that the integration would “reduce exposure to stale price execution and value extraction” for GMX derivative traders.
So how does this assist GMX?
In summary:
This solution aids GMX in lowering trading fees and boosting efficiency and user experience.
It also represents a significant security enhancement for the protocol. pic.twitter.com/SYLlM3gtvX— Aylo (@alpha_pls) April 8, 2023
A beta version of the GMX-specific low-latency oracle feeds — which have been under development since 2022 — is now accessible on the Arbitrum testnet.
Related Posts
In exchange for the service, Chainlink will receive 1.2% of the protocol fees generated by the low-latency oracles from the GMX protocol.
Protocol fees encompass the fees charged to users for margin trading, in addition to standard borrowing fees and swap fees.
Eid mentioned that Chainlink would continue to enhance its oracle services for GMX as the protocol continues to “expand” and “evolve.”
Related: Smooth and secure crypto trading? This perpetual DEX is up for the challenge
It seems that GMX is not the first perpetual DEX to adopt this new type of oracle.
Matt Losquadro, a former ambassador of the on-chain derivatives platform Synthetix, stated that it integrated a similar solution first, which was noted by a member of the GMX community prior to the proposal being submitted:
Synthetix hoodie spotted on the GMX forums.
Even GMX community members recognize that Synthetix Perps has had off-chain oracles for 4 MONTHS.
Anyway, who wants a hoodie? pic.twitter.com/GROlR2m4jH— MattLosquadro.eth ⚔️ (@MattLosquadro) April 9, 2023
The Arbitrum-native GMX also launched on Avalanche (AVAX) in January 2022. It currently boasts a combined total value locked (TVL) of $669 million across the two networks, according to data from DeFiLlama.
It is presently the largest protocol on Arbitrum, which is the largest Ethereum layer 2 network by TVL.
Chainlink oracles were introduced on Arbitrum in August 2021.
USD Coin (USDC), wrapped Ether (wETH), and wrapped Bitcoin (wBTC) are the three largest tokens held on GMX, with shares of 43.6%, 23.2%, and 16%, respectively.
Magazine: Crypto Twitter Hall of Flame: Lark Davis on fighting social media storms, and why he’s an ETH bull: Hall of Flame
