GMX V2: GMX will integrate Chainlink’s new Low-Latency Oracles
The integration will further enhance GMX's security and performance.
The GMX community has voted to integrate Chainlink’s new low-latency oracles for financial market data in its upcoming GMX V2 update, to support perpetuals, swaps, and liquidity. GMX will be the exclusive launch partner of Chainlink’s new oracle solution. The Arbitrum testnet already has a beta version of the low-latency oracles deployed, and testing by core contributors is ongoing.
The low-latency oracles are a new standard in ultra-fast oracle infrastructure, and a big step forward for improving the security, decentralization, and DeFi user experience. The GMX DAO responded very positively to the proposal, with 96% of token holders voting in favour, as can be seen on the GMX Snapshot page.
Chainlink’s new low-latency oracles are a major innovation that addresses a significant DeFi pain point: the extreme latency-sensitivity of derivatives exchanges (as well as other price-sensitive DeFi applications).
Benefits of the low-latency oracles
Low-latency oracles address this concern by providing secure access to high-quality market data in a pull-based manner, while maintaining Chainlink’s battle-tested infrastructure, where data is cryptographically signed by a decentralized oracle network and verified on-chain.
The integration will enhance the GMX exchange’s performance, harden its data security, help mitigate the risks of frontrunning, and provide long-term sustainable access to Chainlink’s essential Web3 infrastructure.
“We’re excited to see our community approve this integration and for GMX to be the launch partner of Chainlink’s new low-latency oracles,” comments X, development core contributor of GMX. “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."
Building self-sustaining DeFi models
The collaboration between GMX and Chainlink also marks a transformational moment for the maturity and economic sustainability of Web3 through the creation of a sustainable financial framework.
A fee structure will be established in which 1.2% of total fees generated by GMX V2 and later protocol versions will be paid to Chainlink service providers in exchange for the usage of the low-latency oracles and long-term technical support.
"Chainlink Labs has been committed to the support and growth of DeFi since its very early days,” states Johann Eid, VP of Go-To-Market at Chainlink Labs. “With this collaboration, we mark a new milestone for the space and its race towards mass adoption…
The low-latency oracles will bring the industry one step closer to the performance level that currently exists outside of it, while our economic alignment helps set the foundation for a more sustainable ecosystem. We’re excited to keep building this space with leading projects such as GMX, one block at a time until DeFi becomes a leading and secure global financial system."
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