Optimistic Ethereum has announced that the leading decentralized oracle network, Chainlink, is now live on Optimistic Ethereum. The announcement comes after steady and consistent demand to implement the feeds by the Optimistic Ethereum community.
External oracles such as Chainlink have been growing in importance, with several smart contract applications relying on them in some capacity. Most protocols rely on oracles for their price feeds in DeFi. The price feeds are used for on-chain actions such as loan collateralization or setting binary options at expiry.
Easily Access Chainlink Price Feeds
With the integration, developers can easily and securely build all types of DeFi applications by using the Chainlink Price Feed’s decentralized oracle networks. The oracle networks maintain high-quality and tamperproof data feeds on-chain. These can be used by several assets such as stablecoins, cryptocurrencies, commodities, indices, and other assets.
There are already a number of Chainlink Price Feeds that are already running on Optimistic Ethereum that developers can easily access. Developers can also reach out directly to Chainlink to help launch new price feeds across different types of assets.
With Chainlink Price Feeds being native to Optimistic Ethereum, they can run at the underlying cost and speed of Optimistic Ethereum, allowing developers to get low-latency and inexpensive price updates, all in real-time. As a result, developers have access to advanced smart contract applications on Optimistic Ethereum’s Layer-2, previously unavailable on Layer-1.
Chainlink Price Feeds have also already been integrated on Optimistic Ethereum by Synthetix, giving low-cost and low-latency Oracle updates. The integration also supports trading of options on Lyra, trading of Synths on Kwenta, and binary options of Thales.
The Benefits Of Integrating Chainlink Price Feeds
There are several benefits development teams can get once they integrate the Chainlink Price Feeds.
- High update frequency - The Chainlink Price Feeds offer low latency price updates at a minimal cost. This results in data that accurately reflect prevailing market conditions.
- Quality data - The Chainlink Price Feeds source data from several high-quality data aggregators. This means that the price data provided by Chainlink Price Feeds has been aggregated from hundreds of exchanges. The data is then cleaned from outliers and any suspiciously large volumes and also weighted by volume. This aggregation method allows Chainlink to generate accurate market prices that are immune to API downtime, data manipulation attacks, and flash crash outliers.
- Robust infrastructure - The price feeds use decentralized networks that are run by leading DevOps teams. These have a track record of uptime and tamper-resistance during periods of volatility, congestion, and any infrastructure outages.
- Transparency - Chainlink will provide a set of on-chain monitoring tools and a robust reputation framework that will enable users to verify all price feeds’ historical and real-time performance.
Easy Migration to Optimistic Ethereum
The Chainlink Integration also ensures the easy migration of existing and new Decentralized Applications to the Optimistic Ethereum Layer-2, with minimal changes required to the code. The Chainlink and Optimistic Ethereum teams are working together to expand the support on Optimistic Ethereum to include other Chainlink services such as Chainlink VRF and Chainlink Keepers. Chainlink VRF is an RNG solution for NFT and gaming dApps, while Chainlink Keepers are decentralized bots that help in smart contract automation. The Chainlink Keepers also help in getting off-chain computation and external data from pretty much any API.
Understandably, the developments have triggered a fair amount of excitement and optimism at Chainlink and Optimistic Ethereum. CEO and Co-Founder of Optimistic Ethereumm Jing Wang commented,
“Chainlink Price Feeds provide Optimistic developers with a seamless plug-n-play solution for getting high-quality data and time-tested oracles within their DeFi applications. Combined with our scalable infrastructure, developers can launch scalable, externally connected dApps with minimal changes to their L1 code and without having to sacrifice the robust underlying security of Ethereum L1.”
Chainlink Co-Founder Sergey Nazarov also commented on the developments, stating,
“With Chainlink oracle networks natively integrated on Optimism, developers can leverage the most decentralized and secure off-chain services for building advanced hybrid smart contracts. Chainlink’s tamperproof and high-frequency oracle updates in combination with Optimism’s low-cost layer 2 scaling solution give smart contract developers the mission-critical infrastructure they need to build hyper-reliable, high throughput dApps.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.