Totally agree with CapitalismLab.
It is unreasonable to charge at 1.2%.
Does chainlink charge Apple taxes?
Given the high growth rate of GMX, this price will go higher and higher until it reaches a ridiculous level.
We should pay a fixed price.
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I have a pro-Chainlink bias, but thatâs because Iâve been following them closely since they launched. Iâm gonna state it bluntly but here it is: there would be no defi in its current state without Chainlink. They pioneered the oracle layer with the highest concerns for R&D innovation and security, and allowed the first wave of defi protocols to launch rapidly and grow to where we are today. Iâve witnessed too many exploits to enumerate because some teams didnât take their oracle security seriously enough. By contrast, Iâve also in the past 5 years repeatedly witnessed what could be labeled as âthe Chainlink effectâ, or how a chain or a protocol starts gaining significant growth metrics post-Chainlink adoption, opening up entirely new markets for their developers leading to more growth, and guaranteeing the highest security for the end users, leading to more virtuous cycles of adoption. Chainlink as a layer should be viewed as a public good, this is no different than a % of fees going towards the maintenance of the main chain.
1.2% is more than fair and reasonable when you actually consider the critical security, peace of mind and value add that Chainlink brings to the table.
As Johann pointed out, this type of fee structure reflects a deeper win-win strategic alignment and long-term involvment/support, meaning infrastructure custom-designed and engineered for GMXâs current & future needs in close collaboration with GMX core contributors. This is a key aspect not to ignore.
Now consider that historically, the earliest and closest Chainlink adopters have gained a significant advantage in terms of overall ability to innovate and rapidly and securely deploy new markets. Because simply put, most dapps innovations derive from new oracle capabilities.
I believe this not only includes this new low-latency solution but also, potentially, all their other offerings, such as CCIP which is also promising to take dapps to a whole next level and facilitate cross-chain innovations.
Iâm expressing myself here with the belief that Chainlink is a true unsung backend champion of the entire defi sector, having allowed countless projects to grow faster yet with enhanced security, but with the general understanding that DAO community members focused on frontend/dapps, and who may not be active on technical development or interested in backend concerns, but are more concerned with the treasury side of things, may sometimes fail to appreciate the value that Chainlink has historically brought to projects that developed deeper relationships with their team and adopted their innovations. All I can say in this matter is, please do some research on the complexity and critical important of the oracle layer in dapps.
Consult with actual technical contributors if you can and I believe they will all tell you the same thing: If thereâs one aspect you should not underestimate, itâs the oracle layer of your protocol. Chainlinkâs track record speaks for itself. They are simply the best, most professional and most committed at what they do. Do a deep dive in their architecture docs if you can. A deeper, tighter relationship with their talent can only bring brighter opportunities for GMX long-term.
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Collaborating with Link is very meaningful, but a 1.2% share is very unreasonable. If the revenue of the GMX agreement increases tenfold, Link will share 10 million US dollars, which may be expensive. The majority of people in the discussion believe that:
- Supporting cooperation with Chain Link, but using fixed fees;
- A 1.2% share is not practical and seriously unreasonable, It sows seeds for the loss of future assets of gmx
- What is the industry standard for the cost of cooperation with oracle machine, what kind of service I want to get, so how much does it cost and so on!
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Hey guys, have been observing this proposal for a while now and it seems that many of the concerns lie on the fact that 1.2% of the protocol revenue will be rewarded to Chainlink as a contribution for their low-latency oracle solution.
Not sure many of you have noticed but Pyth actually came out with the exact same infrastructure last year and Synthetix has been using it for their perps v2. No cut of Synthetix protocol fees are being diverted to Pyth.
Attaching some links for further details:
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Subject: Cease and Desist - Misappropriation of Intellectual Property
Dear Johann,
I am writing this letter on behalf of community members from the SynthetixDAO (âSynthetixâ), a leading decentralized financial platform focused on providing innovative financial platforms and liquidity infrastructure. It has come to our attention that Chainlink Labs LLC (âChainlinkâ) is developing and implementing a âlow latency oracle solutionâ that misappropriates the intellectual property of Synthetix.
The Synthetix community had previously ideated and shared with Chainlink the concept, specifications, and requirements for the development of a low latency oracle solution, with the understanding that Chainlink would create this solution for Synthetix. However, it has recently come to light that Chainlink has proceeded to develop and promote this low latency oracle solution as its own intellectual property, without any acknowledgment of Synthetixâs contributions or prior agreement.
This misappropriation of Synthetixâs intellectual property and violation of the implied agreement between our companies is unacceptable. Accordingly, we demand that Chainlink immediately:
Cease and desist from any further use, development, distribution, or promotion of the misappropriated low latency oracle solution;
Acknowledge Synthetixâs contributions to the concept, specifications, and development of the low latency oracle solution in all relevant materials, including Chainlinkâs website, marketing materials, and any other public or private channels; and
Provide written confirmation within fourteen (14) days from the date of receipt of this letter that Chainlink has complied with the aforementioned demands.
We further request that Chainlink enter into a dialogue with Synthetix to discuss the potential for an amicable resolution of this matter. Failure to comply with the demands set forth in this letter may result in SynthetixDAO pursuing all available legal remedies against Chainlink, including, but not limited to, seeking injunctive relief, monetary damages, and attorneyâs fees.
Please understand that this letter is not a complete recitation of the facts or applicable law, and nothing herein is intended as, nor should it be construed as, a waiver or relinquishment of any of Synthetixâs rights, remedies, or defenses, all of which are expressly reserved.
We look forward to your prompt response to this matter.
Sincerely,
William87
Associate, Samuel & Polik Law Partners
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@William88, the low-latency oracles put forward for the GMX v2 launch are the result of a collaboration between the GMX and Chainlink Labs contributors. This forum post is meant to discuss the merits of a long-term collaboration between two protocols pioneering new solutions for the space together. Our team was not able to find your law firm or its website anywhere, but you can contact us directly on this matter at legal@chainlinklabs.com and letâs keep this thread focused on relevant DAO discussions.
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Sure besides the flagrant theft of intellectual property, skimming 1.2% of fees for centralized price feeds is top tier grift. Hope GMX holders arenât dumb enough to allow this robbery to pass.
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@perps thank you for your feedback. Chainlink and Pyth are two strong participants in the Oracle space but saying the pull based oracles that Pyth are providing Synthetix for their v2, are the exact same as what Chainlink has built to help support GMX requirements is simply not correct, there are multiple key differences in terms of how data is recorded, how the data is transmitted and what information is being assembled.
In looking at how GMXâs now year old, low latency pull based Oracle infrastructure could be better decentralized and supported with a protocol that could focus on the associated challenges (data quality, latency, incentives for participants and ensuring decentralization) the core contributors evaluated many groups including Pyth.
I really donât want to take anything away from Pyth, have considerable respect for the team but their solution didnât line up with our requirements and its possible that at the time recent partnership with Synthetix (who had moved away from their long time Oracle partner Chainlink) meant they had a design in mind that addressed Synthetix needs.
I do wonder in case you are more familiar with the Synthetix community, is there an expectation that Pyth will never charge Synthetix fees? If so how do they pay for their infrastructure, data feeds and ongoing R&D? Has Synthetix assumed that oracles will be a free service while developing their tokenomics for their v3?
No doubt Chainlink and Pyth will continue to iterate and improve their products, as the proposer my perspective is that it is clear why Chainlink will keep developing and improving their product to meet the growing and evolving needs of GMX, they are getting paid to do so.
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So everyone who makes a random account on here can comment? I thought a DAO discussion are ONLY for those who own a stake in GMX protocol.
Toxic trolls like Williams and the Pyth guy add zero contribution to this whole discussion at all, posting larps and copies pasted legal templates created by ChatGPT just to sow dissent.
Furthermore it is not a shame to just blatantly call out PYTH for their shit security, how many times have they been exploited already, how do you even dare to consider this joke of a project, do you want to put our users fund at risk?
1.2% fee is literally nothing for peace of mind and early access and help with testing on upcoming future products regarding interoperability and zero knowledge proofs.
Finally do not try to put Synthetix and Pyth as one team, nobody is a team with them except shitcoins. Snx will dump the current unsecure patched together non scalable low latency oracles in a heartbeat when Chainlink Finally releases their secure scalable version.
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Thank you for the response!
I believe the GMX community would also be interested in knowing more about the detailed evaluation done by the GMX contributors that ultimately decided why Chainlink is the better fit compared to Pyth. The comparison should give a better understanding on the oracle pricing, latency, impact on GMX fees/spreads, etc. Synthetix perps v2 have been using Pyth successfully for several months. It would do the GMX community a great disservice if the contributors donât consider all the available options and disclose the findings in this forum.
Ultimately, as a member of the GMX community, I believe that we deserve to know that if 1.2% of the protocol revenue were to be diverted for an oracle service, we are getting a thorough analysis and comparison of possible options (Chainlink, Pyth, possibly others) so that we can objectively decide that Chainlink is indeed the best solution.
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There is a chain of evidence in public tweets, discord posts, and recorded calls documenting this fraud. Mind your manners or you might be paying SynthetixDAO that 1.2% licensing fee.
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Imagine if JPM paid 1.2% of their annual revenue to their ISP lol oooitscrime
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What is your point, troll?
Except for wasting the time of people who have a contribution to society.
Imagine if AWS gave everyone their services for free. lol oooitscrime
Another oh so valuable and especially loyal member, you deserve nothing without GMX tokens.
How about you answer the questions of panda:
1.I do wonder in case you are more familiar with the Synthetix community, is there an expectation that Pyth will never charge Synthetix fees? If so how do they pay for their infrastructure, data feeds and ongoing R&D? Has Synthetix assumed that oracles will be a free service while developing their tokenomics for their v3?
Instead of screaming that you deserve something, troll.
@William88, are you same William87 who is on the Synthetix Spartan Council or are you impersonating them? If are you the same William87, then you have a clear conflict of interest with this proposal given Synthetix is a competitor to GMX. Your trolling also reflects extremely poorly on both your professionalism as an elected member of the Synthetix community and the Synthetix community as a whole. Letâs keep this forum a troll-free place.
Also, did you know itâs illegal to impersonate being a lawyer? Itâs obvious you are not a real lawyer given your stated law firm cannot be found anywhere and no real lawyer would be acting in the unprofessional adversarial manner you are here.
To Coinâs previous point, GMX and Chainlink worked together on the creation of these oracles to meet the specific needs of the GMX protocol. It is also not unreasonable for payment to be made to use the oracles, as the development, maintenance, and improvement of oracles does not come for free, there are real costs involved. Oracles need to be economically sustainable and I hope this is something the Synthetix community considered when using Pyth.
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@William88 we have nothing but respect for Synthetix and its community, it was an OG in the space and the contributors were doing DeFi years before it was really even a word in our vocabulary. Your contributors hard work helped to shape the DeFi environment we all operate in today and we hope we can also make meaningful contributions over the coming years.
Did want to confirm if you are the same william87 who from what I can see has been on the Synthetix Spartan Council over the last two epochs?
If you are I would think, your fellow contributors and yourself would have better means to contact Chainlink, your Oracle and data provider of many years than the governance forum of GMX, and if you arenât the same person please do clarify as your messages might be misconstrued as being on behalf of the Spartan Council of Synthetix.
Wish you a good day.
coinflipcanada
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Please, let us all keep the conversations civil and respectful.
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" Hi guys! Perp here. Pyth is totally free, you should definitely consider using our perps as they will be free forever hahaâŚand guysâŚ, weâll totally provide this critical piece of infrastructure without taking any fees, because⌠just because! Enjoy! "
I have a hard time wrapping my head around this. I work for a big international ecommerce platform and we charge retailers 0.5%-1% of their REVENUE. Not even profit, but revenue. Some retailers have thin marges so they take a big haircut using our service, and they still do because it saves them a shitload of time and money in the long run.
In this case, Chainlink takes a 1.2% cut of what is essentially pure profit, right? It is such a small slice of the pie, I canât imagine anyone objecting has a clue how stuff like this works in the real world.
Elephant in the room is the entity behind pyth is jump trading, algo traders and market makers, only reason theyâd provide data for free is to entrench themselves in derivatives protocols so they can front run other users down the line, synthetix baggies were so impatient seeing other protocols gain more traction that they made a pact with the devil regardless of these implications
Their architecture is also duct tapped dog shit on a technical level compared to chainlink since theyâre running on Solana and then relaying through wormhole with massive security holes as a result of rushing to market instead of being a coherently designed network
Say what you will about Chainlink but the fact they were born out of the Ico era means they are a provably neutral and independent entity, and theyâve also proven with research like fss that theyâre committed to the decentralized ethos and trying to prevent bad actors extracting value opportunistically
That and jump just bought the vote for synthetix to adopt pyth with a backdoor market maker deal
In case you donât know, sbf was a major shareholder in pyth, his leaked balance sheet showed his stake in their unreleased token. They also backed Luna along other bullshit scams, wormhole had the biggest exploit in defi history, etc.
Truly I canât stand these guys and the baggies too dumb or blind to realize what a threat they represent.
Finally,
1.2% is very unreasonable. The income of the gmx agreement is higher than 99% of the agreements on the market. For some agreements, such as lending, the annual income is not as high as a weekâs gmx. This is more beneficial for other protocols. Whatâs more, gmx expects its revenue to double, and the amount of commission will be very large at that time. My opinion is only for fixed amount fees
The fees collected by the network will double, so the fee Chainlink will collect will also double! How unreasonable!
Totally agree with CapitalismLab. It is unreasonable to charge at 1.2%. Does chainlink charge Apple taxes? Given the high growth rate of GMX, this price will go higher and higher until it reaches a ridiculous level. We should pay a fixed price.
Yes, itâs very reasonable to pay a fixed price when your protocol is trying to expand 10-fold and thus put 10 times the pressure on the provided service. smh
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