GMX, the decentralized crypto derivatives exchange that supports up to 50X leveraged transactions of bitcoin (BTC), ethereum (ETH) and other liquid assets, may soon integrate Chainlink’s low-latency oracles into v2.
GMX DAO proposes to integrate Chainlink’s low latency oracles
In it proposalA user wants GMX’s Decentralized Autonomous Organization (DAO) that runs the cryptocurrency derivatives platform to incorporate Chainlink’s oracles into GMX v2 and be Chainlink’s exclusive launch partner.
The beta version of GMX v2 on Arbitrum, a Layer 2 scaling solution on Ethereum, a smart contracting platform, has incorporated Chainlink’s low latency oracles. Users are free to try.
The April 6 proposal will be voted on by GMX holders. However, whether or not it will happen depends entirely on what the community thinks of the idea. GMX is the governance and utility token of the decentralized exchange, and holders are free to express their opinions and vote on important updates and proposals.
Chainlink offers several major services in the decentralized finance (DeFi) and non-fungible tokens (NFT) sub-sectors. In DeFi, they provide decentralized oracles that act as middleware. In this design, smart contracts deployed on platforms like Ethereum or Polygon, for example, can access tamper-proof data from price feeds streamed from exchanges and more.
Improve security and performance
By incorporating Chainlink’s low latency oracles into GMX v2, the derivatives trading platform will have “granular, real-time market data to better enable crypto and non-crypto markets,” which will benefit traders. The proponent explains that the low latency oracle it is designed to meet the “needs of perpetual exchanges and other price-sensitive DeFi products.” Also, unlike standard oracles that broadcast prices and more, they are faster and more robust, leveraging Chainlink’s vast network of decentralized nodes.
Chainlink has been developing these low latency oracles since 2022 with input from GMX developers. The approval of the incorporation will give the protocol a key infrastructure solution and an advantage in the competitive landscape. A Chainlink Labs representative also commented on the proposal saying that the integration will strengthen data security, mitigate initial risks, and make the protocol more sustainable in the future.
As part of the deal, the DAO says it plans to direct 1.2% of the generated protocol fees to Chainlink for the provision of its low-latency oracles.