- The integration of Chainlink helps ensure that new and existing DeFi applications can migrate to the OΞ L2 with minimal, if any, changes to the code.
Decentralized oracle network Chainlink is now running live on Optimistic Ethereum layer 2 scaling solution.
Optimistic Ethereum is the layer 2 scaling solution that enables anyone to execute any vision on an open source protocol that will never be captured by private commercial interests. OΞ radically decreases latency and gas fees while greatly increasing overall throughput. Optimism PBC is the team developing the OΞ.
Most smart contract applications and protocols rely on external oracles in some capacity, particularly for price feeds in DeFi to perform on-chain actions like checking loan collateralization or settling binary options at expiry.
The importance of oracles will only continue to grow too, as projects increasingly leverage oracles to add advanced utility to their on-chain applications.
Earlier this month, Chainlink collaborated with LCX to provide transparent and verifiable reference price services for DeFi applications and the token economy.
Some of the benefits to development teams integrating Chainlink Price Feeds include:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and suspicious volumes. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
- High Update Frequency — Chainlink Price Feeds deployed on Optimism offer low latency price updates at minimal costs, resulting in precise price data that consistently reflects current market conditions.
- Robust Infrastructure — Chainlink Price Feeds utilize decentralized networks of professional node operators run by leading blockchain DevOps teams and traditional enterprises with a strong track record of uptime and tamper-resistance during market volatility, network congestion, and infrastructure outages.
- Transparent Monitoring — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of price feeds.
Chainlink’s integration helps ensure that new and existing DeFi applications can migrate to the OΞ L2 with minimal, if any, changes to the code.
Jing Wang, Co-founder and CEO of Optimism, said:
“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.”