GMX Exchange Chooses Chainlink's Oracles for Lightning Trades
According to recent news, A Chainlink exec stated that when settling the trades of users, the oracles will improve the security of the GMX Exchange. This improvement is due to a stronger degree of temper resistance.
The decentralized exchange DEX will merge with the low latency oracles of Chainlink. This integration resulted in a successful governess proposal, which looked up to provide more granular real-time market data to GMX v2.
Key Takeaways:
- GMX DEX integrates Chainlink’s low latency oracles for better trading and functionality.
- The GMX community voted 96% in favor of the proposal.
- The new oracles improve security, user experience, and protocol decentralization.
- Chainlink receives 1.2% of GMX protocol fees for its services.
- The GMX-tailored beta version of low latency Oracle feeds is on Arbitrium testnet, with $669M TVL on GMX and Avalanche.
On 25 April at 12:00 AM, voting ends. It indicates that 96% of GMX token-holders participating in voting are in favor of the proposal.
Uncover took to Twitter and announced Chainlink’s integration of low-latency Oracle and Arbitrium-native GMX. 96% vote of the GMX community is in favor of this integration.
The proposal’s author demonstrated that the new Chainlink oracles build with the input of GMX Core contributors. It led the way to enhance price-sensitive trading on GMX and the functionality of perpetual DEXs.
Additionally, according to the head of integration at Chainlink Labs named, Johann Eid, the low latency articles are set to build up this security. Further, it improves the user experience and decentralizes the protocol.
At the same time, these new oracles use the node operators of the same oracle. Moreover, these new oracles utilized aggregation mechanisms in existing Chainlink reference feeds. Eid elaborates on data extraction in the new oracles at a higher frequency.
On 8 April, Aylo, another Twitter commentator, elaborated their 62,600 followers by integrating new oracles. He said that for GMX derivative traders, low latency Oracle security reduces exposure to value extraction and stale price execution.
Nosis announced on Twitter that low latency oracles of chain links would merge with the decentralized exchange (DEX) GMX. This results in a successful governess proposal.
Let’s talk about the version of GMX-tailored. Low latency Oracle feeds, a beta version of the GMX-tailored, are now present on the Arbitrium testnet. This version has been working since 2022.
Furthermore, Chainlink will receive 1.2% of protocol fees in return for the services. Low latency Oracle generates this fee from the GMX protocol. This protocol fee includes swap fees, standard borrow fees, and the fees paid by the user from margin trading.
Chainlink will continue to clarify its Oracle services to GMX as the protocol continues to evolve and expand according to Eid.
GMX is not the only perpetual DEX that embraces the new type of oracles. The members of the GMX community first observed the integrated similar solution. Then put this proposal forward.
Vivek Agarwal announced on Twitter that by providing a stronger degree of temper resistance when setting user trades, the oracles would improve the security of GMX.
In January 2022, the Arbitrium-native GMX was also initiated on Avalanche. Currently, the combined total value locked (TVL) on the two networks is $ 669 million, according to DeFiLama data.
Moreover, it is the largest agreement on Arbitrum. According to TVL, Arbitrum is the largest Ethereum layer 2 network. In August 2021, Chain Links Oracle initiated Arbitrum. The largest three tokens held on GMX have wrapped Bitcoin (wBTC), USD Coin, and wrapped Ether (wETH).