According to a post by Chainlink on the X Platform, derivatives protocol Synthetix will be adding Chainlink Data Streams to its upcoming v3 deployment on the Arbitrum Network after the governance council unanimously voted in favor of the integration.
Chainlink’s Data Streams are so-called “pull-based” oracles designed to provide verified on-chain data at higher frequency and lower latency than traditional “push-based” solutions. This is particularly useful for decentralized derivatives exchanges like Synthetix, which require real-time access to market data to facilitate trading.
Chainlink stated that “Data Streams significantly improve the performance, security, and stability of markets on the Synthetix protocol.”
Synthetix aims to bridge the usability gap between centralized and decentralized exchanges with its Synthetix v3 protocol, which aims to be “a permissionless derivatives liquidity platform for the next generation of on-chain financial products,” the company said in a blog post.
In July, Chainlink executive Raoul Schipper submitted a proposal to the Synthetix governance body, the “Spartan Council,” advocating for integration when v3 is deployed on Arbitrum (Ethereum Layer 2). This was approved on August 9.
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According to the proposal, while live performance metrics from the Arbitrum implementation are pending, “Synthetix’s use of Data Streams could be expanded to include additional feeds and markets deployed on alternative networks such as Optimism and Base.”
In June, Chainlink launched Data Streams along with another derivatives trading protocol on the Avalanche network.
Chainlink has been expanding aggressively in 2024. In May, the oracle provider announced an integration with Celo to bring Chainlink’s CCIP interoperability protocol to users of the Ethereum layer 2 network.
Chainlink’s automation features and CCIP protocol were recently launched on the Gnosis Network, allowing users to offload heavy computational tasks to the Chainlink network, saving up to 90% on gas fees.
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