Chainlink Joins Synthetix v3 on Arbitrum Launch

Synthetix Integrates Chainlink Data Streams for v3 Deployment on Arbitrum

Derivatives protocol Synthetix is set to integrate Chainlink Data Streams into its upcoming v3 deployment on the Arbitrum network. This integration follows a unanimous vote by the Synthetix governing council, as reported by Chainlink on the X platform.

Chainlink’s Data Streams are pull-based oracles that deliver verified on-chain data with higher frequency and lower latency compared to traditional push-based solutions. This real-time data access is crucial for decentralized derivatives exchanges like Synthetix, which rely on timely market data to facilitate trades.

According to Chainlink, “Data Streams significantly enhance the performance, security, and reliability of markets on the Synthetix protocol.”

Synthetix v3: Closing the Usability Gap

Synthetix aims to bridge the gap between centralized and decentralized exchanges with its v3 protocol. The goal is to establish Synthetix v3 as a permissionless derivatives liquidity platform for the next generation of on-chain financial products.

In July, Raoul Schipper, an executive at Chainlink, submitted a proposal to the Synthetix governing body, known as the “Spartan Council,” advocating for the integration of Chainlink Data Streams with the v3 deployment on Arbitrum, an Ethereum layer-2 solution. The proposal was approved on August 9.

Pending live performance metrics from the Arbitrum implementation, the proposal suggests that Synthetix’s use of Data Streams could extend to additional feeds and markets deployed on alternative networks, such as Optimism and Base.

Chainlink’s 2024 Expansion

Chainlink has been aggressively expanding its offerings in 2024:

• In June, Chainlink launched Data Streams with another derivatives trading protocol on the Avalanche network.
• In May, Chainlink integrated with Celo to provide users of the Ethereum layer-2 network with its CCIP Interoperability Protocol.
• Recently, Chainlink’s Automation features and CCIP protocol went live on the Gnosis network, enabling users to offload heavy computing tasks to the Chainlink network, potentially reducing gas fees by up to 90%.