Thank you @coinflipcanada for bringing forward this proposal to the GMX community! All of us at Chainlink Labs are excited to expand the collaboration between our two ecosystems and accelerate the adoption of the DeFi economy as a whole. We believe that GMX is in a strong position as a leading decentralized perpetual exchange and that this integration will further strengthen GMX by providing secure access to ultra low-latency financial market data.
As the VP of Go-To-Market at Chainlink Labs, I’ve worked closely with Coin, X, and many GMX contributors since last year to understand the GMX ecosystem’s unique requirements for data oracles and help direct the development of Chainlink’s low-latency oracles toward meeting those needs to support GMX as our launch partner. We see this integration as being crucial to enhancing the protocol’s performance, hardening its data security, helping mitigate frontrunning risks, and providing long-term sustainable access to essential Web3 infrastructure. By aligning our technical roadmaps and sustainability goals, we see this proposal as an important step in accelerating DeFi as the much-needed alternative to the status quo of the existing financial system.
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. Once the data is published on-chain, the nodes’ signatures will be cryptographically verified, providing a strong degree of tamper-resistance when settling user trades. We plan to continue refining the low-latency oracles in collaboration with GMX as the protocol continues to expand and evolve.
Decentralized oracles are critical to the ongoing utility and security of dApps within DeFi. In GMX, oracles provide a source of financial market data that users act upon to open, close, and liquidate perpetual positions. With this proposal, a mutual economic framework will be created, helping ensure that GMX has long-term access to Chainlink’s low-latency oracles, which can operate in a sustainable manner. The fee-share percentage in this proposal takes into consideration the unique architecture required to deliver secure low-latency oracle services, as well as ancillary support that helps facilitate GMX’s growth and development.
Chainlink’s role in the DeFi ecosystem is to ultimately serve as an enabler, providing access to the richest set of off-chain data and resources required by dApps to support their growth and realize the vision of a more trust-minimized economy. The success of Chainlink is intrinsically linked to the success of Chainlinked protocols, which this proposal helps facilitate. I’m excited to work together with the GMX community for the many years to come.