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Umami DAO Integrates Chainlink Data Streams To Enhance GM Vaults

Chainlink Data Streams is a pull-based oracle solution that allows protocols to consume data more cost-effectively and at lower latencies while reducing the risk of frontrunning and MEV. As a result, Data Streams expands DeFi’s reach by unlocking fast, user-friendly DeFi products and enabling highly performant DEXs that rival the trading experience of centralized exchanges.

Recently, Umami DAO, an innovative DeFi project for refining yield strategies, announced it successfully integrated Data Streams on Arbitrum mainnet. Data Streams will power Umami’s GM Vaults, which are built on the GMX V2 platform. A recent GMX case study attributes V2’s $360 million TVL, 104,000 unique users, and nine supported markets to its integration of Chainlink Data Streams.

Umami’s GM vaults are designed to streamline liquidity provisioning, allowing users to participate in four markets by contributing a single asset to GM liquidity pools. Umami will initially integrate the ETH/USD, LTC/USD, DOGE/USD, and XRP/USD Data Streams, which are secured by the same time-tested oracle network that has delivered over 11.5 billion data points and enabled more than $9.5 trillion in transaction value onchain. 

In an official announcement, Lead Developer at Umami DAO, Toki, underscored the crucial role Data Streams plays in ensuring the accuracy and precision of GM vaults’ hedging strategies by providing the most reliable, transparent, high-frequency market data through Chainlink’s industry-leading decentralized oracle infrastructure.

“Our rationale for choosing Chainlink was driven by their record of unparalleled performance and security. By integrating Chainlink Data Streams, Umami DAO reinforces its pledge to deliver DeFi products that are not only secure and fair but also set a new benchmark for yield strategies.”

Beyond integrating additional Data Streams, Umami’s future roadmap includes plans to leverage Chainlink services such as Verifiable Random Function (VRF) and Cross-Chain Interoperability Protocol (CCIP), which would allow the protocol to securely expand across multiple blockchain networks.

To learn more about Umami DAO, visit their X and Discord.

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