HomeNewsChainlink and Arbitrum: The Power Behind GMX's DeFi Success

Chainlink and Arbitrum: The Power Behind GMX’s DeFi Success

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  • GMX integrates with Chainlink and Arbitrum, offering enhanced on-chain trading and decentralized finance functionalities.
  • The platform has seen substantial growth in liquidity and user base, emphasizing its commitment to becoming a foundational layer in DeFi.

GMX’s Strategic Collaboration and Growth

GMX, a notable player in the decentralized finance (DeFi) space, has successfully partnered with Chainlink and Arbitrum, marking a significant advancement in its offerings and user experience. With Chainlink’s oracle solutions and Arbitrum’s efficient Layer-2 technology, GMX has streamlined its on-chain trading capabilities and broadened its reach within the DeFi ecosystem.

Enhancing User Experience with Chainlink Integration

The integration of Chainlink Data Streams has been pivotal for GMX, particularly in scaling its services in terms of speed and security. This collaboration has enabled GMX to offer an experience comparable to centralized exchanges while retaining the benefits of decentralization. The Chainlink Data Streams facilitate faster execution and enhance the user interface, allowing GMX to provide features previously unattainable due to limitations in on-chain price data.

Leveraging Arbitrum’s Layer-2 Efficiency

GMX’s decision to build on Arbitrum, an Ethereum Layer-2 solution, is strategic. Arbitrum’s efficient code base and messaging layer have significantly reduced gas fees and improved transaction speed, crucial for the execution of complex smart contracts like those used by GMX. This has led to a more cost-effective and swift trading experience on GMX, further solidifying its position in the market.

Impressive Growth and Community Engagement

Since integrating with Chainlink and Arbitrum, GMX has witnessed remarkable growth. Key achievements include a total value locked (TVL) of $360 million in GMX pools, $300 million in open interest, and a surge in weekly trading volume. Moreover, the platform now supports nine markets, up from the initial four, indicating its expanding influence in the DeFi sector.

Building Towards a Web3 Future

Looking forward, GMX aims to solidify its role as a permissionless and foundational layer within DeFi. Its focus remains on adding new liquid markets, expanding its community, and optimizing the non-custodial on-chain trading experience. With these developments, GMX envisions becoming an integral part of Web3’s evolution, where complex trading strategies can be executed seamlessly through simplified platforms, marking a new era in decentralized trading and finance.

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John Kiguru
John Kiguru
John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@ethnews.com Phone: +49 160 92211628