Monday, 15 April 2024

Crypto News

Decentralized exchange GMX votes to use Chainlink low-latency oracles

Decentralized exchange GMX votes to use Chainlink low-latency oracles

Chainlink’s (LINK) low-latency oracles will integrate with the decentralized exchange (DEX) GMX following a successful governance proposal that sought to provide more “granular” real-time market data to GMX v2.

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

The new Chainlink oracles — which were built with the input of GMX core contributors — were brought in to improve upon the functionality of perpetual DEXs and price-sensitive trading on GMX, the author of the proposal explained.

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

While these new oracles utilize the same oracle node operators and data aggregation mechanisms used in existing Chainlink reference feeds, Eid explained that the new oracles extract 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 explained the strengthened security will come from the low-latency oracles providing a “strong degree of tamper-resistance when settling user trades.”

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

A beta version of the GMX-tailored, low-latency oracle feeds — which have been in the works since 2022 — are now available on the Arbitrum testnet.

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

Protocol fees…

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