Last November, Chainlink Labs Chief Product Officer Kemal El Moujahid introduced Chainlink’s low-latency oracles as a new financial primitive designed to secure DeFi-based alternatives within the quadrillion-dollar global derivatives market. In a detailed blog post, he outlined how low-latency, pull-based oracles meet DeFi derivatives’ low-latency, low-cost requirements while mitigating risks associated with arbitrage, frontrunning, MEV, data quality and availability.
Today, GMX, the largest decentralized perpetual exchange operating on Arbitrum and Avalanche, announced it will become a launch partner for Chainlink’s low-latency oracles following a community vote to integrate Chainlink’s low-latency solution to support perpetuals, swaps, and liquidity in the upcoming GMX V2 protocol.
“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,” said X, development core contributor of GMX, in an official announcement. “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 available off-chain and pulled on-chain as needed by users’ transactions. This allows dApps to consume data more cost-effectively and at lower latencies while reducing the risk of frontrunning and MEV by keeping price data private until transactions are settled.
GMX will integrate Chainlink’s low-latency oracles along with technical support in order to boost performance, improve data security, and minimize frontrunning risks on the exchange, while Chainlink service providers will receive 1.2% of the total fees generated by GMX V2 and subsequent versions of the protocol.
Johann Eid, VP of Go-To-Market at Chainlink Labs, described the economic alignment between Chainlink and GMX as an important step toward creating essential web3 infrastructure that enables a more sustainable DeFi ecosystem.
“With this collaboration, we mark a new milestone for the space and its race towards mass adoption,” he said. “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.”
To learn more about GMX, visit their website, Twitter, Telegram, Discord, GitHub, and Substack.