Decentralized Exchange GMX Voting To Use Chainlink’s Low-Latency Oracles

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Chainlink’s (LINK) low-latency oracle will be integrated with the decentralized exchange (DEX) GMX. This follows the success of governance proposals aimed at providing ‘granular’ real-time market data with GMX v2.

Voting closed at 12:00 UTC on April 25, with over 96% of participating GMX token holders voting in favor of the proposal.

A new Chainlink oracle, built with input from GMX’s core contributors, was introduced to improve perpetual DEX functionality and price-sensitive trading on GMX, the authors of the proposal explained.

Additionally, low-latency oracles are said to enhance security, further decentralize the protocol, and improve the user experience, said Johann Eid, head of integration at Chainlink Labs.

These new oracles utilize the same oracle node operators and data aggregation mechanisms used by the existing Chainlink reference feed, but Ead said the new oracles extract data at a “higher frequency.” I explained.

“The new Chainlink low-latency oracle will utilize the same set of oracle node operators and multi-tier data aggregation mechanisms currently deployed on existing Chainlink reference feeds, but via a pull-based mechanism to meet the speed requirements of DeFi derivatives. works.”

Eid explained that enhanced security comes from low-latency oracles that provide “strong tamper resistance when settling user transactions.”

Another Twitter commentator, Aylo, explained to his 62,600 followers on April 8 that the integration would “reduce exposure to old price execution and value extraction” for GMX derivatives traders.

A beta version of the low-latency oracle feed tuned for GMX — which has been in development since 2022 — is now available on the Arbitrum testnet.

In return for the service, Chainlink will receive 1.2% of protocol fees generated by low-latency oracles from the GMX protocol.

Protocol fees include standard borrowing and swap fees plus fees paid by users from margin trading.

Eid said Chainlink will continue to refine its oracle services to GMX as the protocol continues to “expand” and “evolve.”

Related: Smooth and secure crypto trading? This perpetual DEX is ready to take on the challenge

However, GMX does not appear to be the first permanent DEX to join the new type of oracle.

Matt Losquadro, a former ambassador for on-chain derivatives platform Synthetix, said he was the first to integrate a similar solution observed by members of the GMX community before the proposal was submitted.

Aribitrum native GMX will also launch on Avalanche (AVAX) in January 2022. According to DeFiLlama data, the two networks currently have a combined gross value locked (TVL) of $669 million.

It is currently the largest protocol on Arbitrum and itself the largest Ethereum Layer 2 network by TVL.

Chainlink oracles launched on Arbitrum in August 2021.

USD Coin (USDC), Wrapped Ether (wETH) and Wrapped Bitcoin (wBTC) are the 3 largest tokens held on GMX with 43.6%, 23.2% and 16% shares respectively. I’m here.

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