GMX-Solana has adopted Chainlink’s Data Streams as its official Oracle solution for price data, funding rates, and liquidations. In parallel, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has facilitated cross-chain staking for Lido, broadening accessibility to staked Ethereum (ETH) on Layer-2 (L2) networks.

These developments highlight Chainlink’s expanding role in decentralized finance (DeFi). It is delivering novel pathways for secure, decentralized trading and staking across different blockchain networks.

Chainlink Data Streams Now Available on Solana

The decentralized perpetual trading platform has selected Chainlink Data Streams as its data oracle solution to support its derivative markets on Solana. This integration aims to meet the high demands of high-frequency trading by utilizing Chainlink’s reliable infrastructure. For GMX-Solana, this strategic choice is set to enhance accuracy, transparency, and market security.

“GMX-Solana is founded on transparency and decentralization, principles that align closely with Chainlink’s approach to enabling DeFi at scale. Integrating Chainlink Data Streams into GMX-Solana will help ensure that our derivatives markets are supported by decentralized, battle-tested infrastructure, enabling a fair trading experience while fully leveraging Solana’s performance benefits,” Q, co-founder of GMX-Solana, explained.

The recent move aligns with Chainlink’s established role in the DeFi ecosystem as a provider of reliable, high-speed data solutions. The adoption of Chainlink Data Streams offers a strong foundation for GMX-Solana to manage execution prices and other critical trading parameters. This would enhance user confidence in a decentralized trading environment.

Key benefits include high data accuracy, a low-latency data delivery model, and access to liquidity-weighted bid-ask spreads. These are all vital to maintaining market stability and reflecting accurate liquidity measures.

To maintain a sustainable economic model, GMX-Solana will allocate 1.2% of its total protocol fees to Chainlink service providers. This mechanism ensures that Chainlink Data Streams can continue delivering low-latency, verifiable market data to GMX-Solana for years to come.

Lido Integrates Chainlink CCIP for Cross-Chain Staking

In parallel with the GMX-Solana partnership, Lido, a prominent liquid staking provider, has integrated Chainlink’s CCIP. This integration enables users to stake ETH directly from Layer-2 networks and receive liquid wstETH (wrapped staked ETH) in return.

Powered by Chainlink’s Programmable Token Transfers, the cross-chain staking solution streamlines the staking process on L2s like Arbitrum, Base, and Optimism, eliminating the need to bridge assets back to the Ethereum mainnet.

This integration resolves a longstanding friction point in staking ETH from L2 networks, where users previously needed to bridge assets, often incurring slippage. Now, with CCIP, users can stake in a single transaction directly from L2 networks, boosting the liquidity and accessibility of staked ETH across the DeFi ecosystem.

“Chainlink’s CCIP was instrumental in enabling this new staking functionality. With Programmable Token Transfers, Lido’s Direct Staking simplifies staking across Layer 2 networks, improving liquidity for wstETH and enhancing cross-chain interoperability,” said Jakov Buratović, Master of DeFi at Lido, said.

Chainlink’s influence extends beyond GMX and Lido. Various platforms across the DeFi and blockchain ecosystems are increasingly adopting its CCIP. Key highlights include Mountain Protocol, Spiderchain, and the Ronin.

This wave of integrations highlights Chainlink’s expanding role as essential infrastructure for cross-chain interoperability. These active partnerships and integrations are driving new utilities for Chainlink’s token, LINK.

“Chainlink generates cash from the fees smart contract developers pay for Oracle services. This cash is used to compensate node operators. The more DeFi protocols and blockchain applications adopt Chainlink, the higher the demand for LINK,” Digital Currency Academy wrote.

Despite these developments, LINK’s performance remains underwhelming, rising only 3.8% on the news to trade at $11.52 as of this writing.

Source : BeInCrypto - Oct 29, 2024