Chainlink Data Streams is a pull-based oracle solution through which high-frequency market data is continuously made available offchain and pulled onchain 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.
Today, Synthetix, the liquidity layer for onchain derivatives powering over 80 Synthetix Perps markets, announced its centrally governing Spartan Council voted unanimously in favor of integrating Data Streams into Synthetix V3 on Arbitrum, the most widely used layer-2 scaling solution for Ethereum.
A Synthetix Improvement Proposal (SIP) details how Data Streams “significantly enhances the performance, security, and reliability of markets on the Synthetix protocol” and outlines a timeline for completing the integration.
Data Streams leverages Chainlink’s time-tested oracle infrastructure, which has reliably enabled over $12.5 trillion in transaction value even during periods of high volatility, to expand DeFi’s reach by boosting the user experience of decentralized exchanges and unlocking advanced products like perpetual futures contracts that require lower gas fees and faster price updates.
Synthetix was the first to integrate Chainlink’s push-based Price Feeds back in 2019. Having already secured over $200 billion in notional trade volume on Arbitrum, Data Streams is compatible with Synthetix V3’s oracle agnostic design and supports the Synthetix ecosystem’s multi-chain expansion through high-quality, low-latency financial market data that requires little-to-no additional trust assumptions.
Synthetix will initially integrate Data Streams for major crypto pairs including BTC, ETH, ARB, LINK, XRP, BNB, DOGE, SOL, UNI, and OP on the new Arbitrum market. Performance data will inform how Synthetix expands its use of Data Streams to cover additional markets deployed on alternative networks such as Optimism and Base.