GMX integrates Chainlink low-latency oracles with 96.28% votes

GMX recently concluded its voting to integrate Chainlink’s low-latency oracles. The decentralized exchange conjured 96.8% approval to conduct the integration.

The decision was undertaken after GMX’s successful governance proposal. The proposal aimed to offer real-time industry data across GMX V2. Chainlink also released an official tweet to inform users about the integration.

The tweet talked about how the integration will provide UX and security enhancements to GMX. In addition, 1.2% of the overall fees generated within GMX V2 and upcoming protocols will be delivered to Chainlink service providers. The fees will act as remuneration for using Chainlink’s technical support and low-latency oracles.

According to Chainlink, the collaboration establishes a win-win situation for both parties. The partnership will emerge as a major step in the economic sustainability of the Oracle framework and DeFi innovation. This, in turn, will facilitate long-term growth for Web3 as part of the Chainlink ecosystem.

With Chainlink Staking evolving to support more Oracle services, a part of the fees generated from the proposal will be directly delivered to stakers. These rewards will be shared for elevating the crypto-economic security of Chainlink used by the GMX exchange. 

The latest integration was also praised by Johann Eid, Chainlink Labs’ head of integration. According to Johann, low-latency oracles establish better security and decentralization to offer an enhanced UX.

The new oracles use the same data generation mechanisms and Oracle node operators. However, the upcoming oracles will extract data at a much higher frequency, added Johann.

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Experts are speculating that the integration will also allow GMX to reduce its trading fees while increasing efficiency. In the meantime, GMX has also released its beta version of low-latency oracle fees on the Abritrum testnet. The partnership is expected to yield massive success for GMX on multiple fronts. 

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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