DeFi

GMX Voted To Integrate Chainlink’s Low-latency Oracles For Fee Solution

Key Points:

  • GMX announced it would be a launch partner for Chainlink’s low-latency oracles.
  • The DEX will include Chainlink’s low-latency oracles to increase speed and data security.
  • Chainlink service providers will earn 1.2% of the DEX’s total fees.
To improve its derivatives and perpetual swap exchange, GMX will connect to Chainlink’s low-latency pricing oracles, which are meant to provide price data quicker than standard oracles.

Following a community vote to integrate Chainlink’s solution to support perpetual, swaps, and liquidity in the upcoming GMX V2 protocol, the largest decentralized perpetual exchange operating on Arbitrum and Avalanche announced today that it would propose to become a launch partner for Chainlink’s low-latency oracles.

Low-latency oracles are a new standard in ultra-fast oracle architecture, and they represent a significant step forward in strengthening the DeFi economy’s security, decentralization, and user experience. The proposal is available on the GMX snapshot page. At the time of publication, more than 96% of community votes have supported the integration, with 1.7 million GMX tokens being utilized to vote.

A few days ago, user “Coinflipcanda” made an intriguing suggestion on the GMX Protocol Governance page. It is a collaboration with Chainlink to create low-latency oracles inside the V2 protocol to ensure traders get consistent and tamper-proof pricing feeds.

The DEX will pay a 1.2% charge on the commissions earned by the platform when individuals utilize it for decentralized trading.

Protocol costs include user fees, such as opening/closing position fees (margin trading), loan fees, swap fees, and any other payments from which GMX Treasury maintains a share of the protocol.

In an official statement, X, GMX’s development core contributor, stated:

“GMX contributors have been working with Chainlink Labs since last year on the specifications of these new oracles, and we’re excited to contribute to establishing a long-term self-sustainable oracle network.”

Data from pull-based Oracle networks is made accessible off-chain and drawn on-chain when required by user transactions. This enables dApps to consume data at lower latencies and at a cheaper fee while also decreasing the danger of frontrunning and MEV by keeping pricing data private until transactions are finalized.

The economic alignment between Chainlink and GMX, according to Johann Eid, VP of Go-To-Market at Chainlink Labs, is a key step toward developing the necessary web3 infrastructure that supports a more sustainable DeFi environment.

Network data operators are constantly encouraged to guarantee low-latency feeds, which are important to market functioning and required for the growth of GMX on other blockchains.

The Arbitrum testnet is currently developing a beta version of these low-latency oracles, and major contributors are testing them.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

16 seconds ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

60 minutes ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

2 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

3 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

4 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

4 hours ago

This website uses cookies.