GMX, a decentralized exchange present on the Arbitrum (ARB) and Avalanche (AVAX) networks, will integrate the low latency oracles of Chainlink (LINK) to strengthen its structure. In return, Chainlink will receive 1.2% of the protocol fees generated on GMX.
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GMX buys Chainlink’s oracles
The decentralized exchange (DEX) GMXpresent on layer 2 Arbitrum (ARB) and Avalanche (AVAX), will acquire the low latency oracles of Chainlink (LINK) to improve its structure.
In exchange for his network of oracles, Chainlink will receive 1.2% of protocol fees generated on GMX. Currently, GMX is the protocol with the highest Total Locked Value (TVL) on Arbitrum, ahead of Uniswap V3 (UNI), Radiant (RDNT), Stargate (STG) and Aave V3, respectively.
The DEX offers, among other things, spot and perpetual trading via a pool of several cryptocurrencies which remunerates its liquidity providers. This rather unique process allows GMX to offer low fees and an absence of impermanent loss. To discover GMX in more detail, you can read our tutorial dedicated to this DEX.
Evolution of the total value locked on GMX from its launch to today
According to the governance proposal, Chainlink’s oracles will promote the long-term development of GMX :
“This proposal provides a key infrastructure solution and development partner to help GMX meet its critical Oracle needs. It directly aligns Chainlink with GMX’s requirements for low latency data feeds on specific assets, market metrics, and new blockchain coverage needed to fuel our growth. »
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Low-latency oracles particularly suitable for DeFi
Designed to meet the needs of decentralized finance (DeFi), the low latency oracles designed by Chainlink make it possible to meet the expectations specific to decentralized applications (dApps) in particular by providing high frequency prices, always with on-chain verification.
Without going into technical details, low latency oracle networks ensure extreme speed, considerable energy efficiency and, above all, prevent attempts at arbitration.
Schematization of the operation of the low latency oracles of Chainlink
For Johann Eid, the go-to-market vice president of Chainlink Labsthis partnership paves the way for wider adoption of decentralized finance:
“Chainlink Labs has been committed to supporting and growing DeFi since its inception. With this collaboration, we mark a new milestone for space and its race towards mass adoption. Low latency oracles will bring the industry closer to the level of performance that currently exists outside of it, while our economic alignment helps lay the foundation for a more sustainable ecosystem. We are excited to continue 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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Source: PR Newswire
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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