Apr 25, 2023
GMX Leverages Chainlink’s Low-Latency Oracles for Increased Security, Efficiency
GMX, a decentralized exchange, has successfully integrated Chainlink’s low-latency oracles to improve the functionality of its perpetual DEXs and price-sensitive trading. Following a 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 tokenholders voting in favor of the proposal.
Johann Eid, the head of integration at Chainlink Labs, explained that the new oracles utilize the same oracle node operators and data aggregation mechanisms used in existing Chainlink reference feeds, but operate via a pull-based mechanism to meet the speed requirements of DeFi derivatives. He further stated that the low-latency oracles will strengthen security, further decentralize the protocol and improve upon the user experience.
The proposal was brought forward with the input of GMX core contributors, and has been in the works since 2022. It is now available on the Arbitrum testnet. Chainlink will receive 1.2% of protocol fees generated by the low-latency oracles from the GMX protocol. Protocol fees include the fees paid by users from margin trading in addition to standard borrow fees and swap fees.
Aylo, a Twitter commentator, 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, and reduce trading fees and increase efficiency and user experience.
It appears as though GMX isn’t the first perpetual DEX to get on board with the new type of oracle though. Matt Losquadro, a former ambassador of on-chain derivatives platform Synthetix, said it integrated a similar solution first, which was observed by a member of the GMX community prior to the proposal being put forward.
The Aribitrum-native GMX also launched on Avalanche (AVAX) in January 2022. It currently has a combined total value locked (TVL) of $669 million on the two networks, according to data from DeFiLlama. It is currently the largest protocol on Arbitrum, which itself is the largest Ethereum layer 2 network by TVL.
Chainlink oracles were launched 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.
NFTs have been gaining traction in the crypto space, and it looks like GMX is looking to capitalize on the growing demand for NFTs. By integrating Chainlink’s low-latency oracles, GMX is able to provide a secure and efficient platform for users to buy, sell, and trade NFTs. This integration will also enable GMX to offer more efficient NFT marketing services, such as Twitter NFT marketing and NFT promotion services.
GMX is also looking to capitalize on the web3 space by partnering with a web3 agency to provide users with more options for buying, selling, and trading NFTs. By partnering with a web3 agency, GMX will be able to offer more comprehensive services for NFT marketing and promotion, as well as provide users with more options for selling NFTs.
Overall, the integration of Chainlink’s low-latency oracles into GMX is a big step for the platform, and will help to improve the security, efficiency, and user experience of its derivatives protocol. It also opens up a range of new opportunities for GMX, such as providing users with more options for buying, selling, and trading NFTs, as well as offering more comprehensive NFT marketing and promotion services.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.