Chainlink Price Feeds Go Live On Optimistic Ethereum Extern | Token Map
Chainlink Price Feeds Go Live On Optimistic Ethereum
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.
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.
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.
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.
