GMX’s recent recovery could be attributed to this ‘LINK’. Here’s how…
April 7, 2023
By Suzuki Shillsalot
Read GMX’s Price Prediction 2023-24
GMX proposed to allocate 1.2% of its revenue to the Chainlink network
GMX’s TVL exhibited a promising recovery and retraced all its losses since the USDC depegging fiasco
As part of its endeavor to bring more decentralization, popular derivative exchange, GMX, proposed to make Chainlink [LINK] the oracle partner of its V2.
The main economic criterion for this proposal was the allocation of 1.2% of protocol fees earned by GMX to the Chainlink Network for the future development of their low-latency oracle solution.
Solving the latency problem
With the goal of enabling high-speed DeFi applications like derivatives, Chainlink has been working on its low-latency oracle solution. Currently, most Web3 derivatives are restricted by latency challenges.
Using low-latency blockchains and oracles, users can build high-speed DeFi applications but with the added decentralization guarantees that give users ownership of digital assets. This solution will also help in cutting down transaction settlement time and mitigate front running.
As of 6 April, the solution was still in its testing phase with its beta version on the Arbitrum testnet. As part of the proposal, GMX’s governance team also recommended to make GMX the exclusive launch partner of the upcoming low-latency oracle solution.
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