After a successful governance vote, GMX integrates Chainlink's new oracle solution.
The decentralized cryptocurrency exchange GMX embraces Chainlink's low-latency oracles after a majority vote from token holders.
During a recent governance proposal, GMX token holders voted regarding the integration of Chainlink's low-latency oracles into the decentralized exchange (DEX).
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The voting concluded on April 25th at 12:00 am UTC, with more than 96% of participants supporting the proposal.
The primary goal behind integrating these Chainlink oracles is to deliver more accurate, real-time market data for GMX v2. In particular, the proposal read:
Chainlink’s new low-latency oracles can provide more granular real-time market data to better enable crypto and non-crypto markets on GMX V2, compared to existing Chainlink reference feeds and other industry oracles.
Developed with input from GMX core contributors, these oracles are expected to enhance the functionality of perpetual DEXs and price-sensitive trading on the platform.
Johann Eid, the head of integration at Chainlink Labs, explained that the low-latency oracles would not only boost security but also contribute to further decentralization of the protocol and improve user experience.
The new Chainlink low-latency oracles will utilize the same set of oracle node operators and multi-layered data aggregation mechanism currently deployed in existing Chainlink reference feeds, but operate via a pull-based mechanism to meet the speed requirements of DeFi derivatives.
The enhanced security comes from the low-latency oracles' strong "tamper-resistance when settling user trades."
According to a Twitter user dubbed Aylo, the integration would "reduce exposure to stale price execution and value extraction" for GMX traders.
Upon the approval of the governance proposal, GMX-tailored low-latency oracle feeds are currently available on Arbitrum testnet.
As compensation, Chainlink will receive 1.2% of the protocol fees generated by the low-latency oracles from the GMX protocol, including margin trading fees, borrow fees, and swap fees.
Eid confirmed that Chainlink would continue refining its oracle services for GMX as the protocol keeps growing and evolving. The integration of Chainlink's low-latency oracles marks a significant step forward for GMX, ensuring more accurate data and an improved user experience.
In other GMX-related news, at the beginning of January, during the exploit, GMX native token’s whale lost around $3.5 million worth of GMX assets.
