GMX, the largest decentralized perpetual exchange operating on Arbitrum and Avalanche, has announced its partnership with Chainlink Labs, a blockchain-based network that provides secure and reliable decentralized oracle solutions for DeFi applications.
The partnership comes after a successful community vote that led to the integration of Chainlink’s low-latency oracles into GMX V2 protocol to support perpetuals, swaps, and liquidity.
Chainlink’s Chief Product Officer, Kemal El Moujahid, introduced low-latency oracles as a new financial primitive in November 2021. In his blog post, he explained how these oracles meet DeFi derivatives’ low-latency, low-cost requirements while mitigating risks associated with arbitrage, frontrunning, MEV, data quality, and availability. These oracles provide a pull-based mechanism to access data off-chain and then pull it on-chain as needed by users’ transactions.
The integration of Chainlink’s low-latency oracles will enable GMX to improve its data security, minimize frontrunning risks and boost performance. GMX has been working with Chainlink Labs since last year on the specifications of these new oracles, and it’s excited to be a launch partner for the new low-latency oracles.
X, the development core contributor of GMX, expressed excitement about the integration, saying, “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. 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.”
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, emphasized the economic alignment between Chainlink and GMX and how it is an important step towards creating essential web3 infrastructure that enables a more sustainable DeFi ecosystem.
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