Revolutionizing DeFi with Polygon zkEVM
The Polygon zkEVM network, launched earlier this year, aims to revolutionize DeFi by leveraging zero-knowledge proofs and maintaining Ethereum Virtual Machine (EVM) equivalence. API3, a leading blockchain oracle provider, has been collaborating with Polygon zkEVM since April 2023, offering first-party oracle services to enhance the network’s capabilities.
Transforming DeFi Oracle Landscape
The centerpiece of this collaboration is the introduction of managed decentralized APIs (dAPIs) on the API3 Market. This service empowers developers with access to decentralized data feeds delivered by first-party oracle nodes, supporting native-chain aggregation. These data feeds are critical for lending protocols and perpetual decentralized exchanges (DEXs) that rely on accurate and timely market data for their operations.
Traditional DeFi applications often use push-type oracles to secure their TVL, but these solutions come with limitations such as high fees, source opacity, and potential vulnerabilities. API3’s new push oracle solution aims to rectify these issues. It operates on a first-party architecture, allowing for seamless migration of DeFi protocols from other EVM chains to Polygon zkEVM. This transition is essential for scaling DeFi to a broader audience.
API3’s push oracle solution is built around the Airnode first-party oracle node, which eliminates intermediaries and ensures direct sourcing of cryptographically signed data onto the blockchain. This design enhances data source transparency, reliability, and integrity. Push oracles have historically played a pivotal role in the DeFi landscape, and API3’s approach introduces new standards that align incentives across data providers, networks, and decentralized applications.
Boosting DeFi Growth on Polygon zkEVM
The managed dAPIs on the API3 Market offer a diverse array of real-world data, including cryptocurrencies, forex, equities, and commodities. Notable projects such as QuickSwap Perps, Dovish, and MantisSwap have already integrated managed dAPIs to enhance their security mechanisms, pricing accuracy, and protection against stablecoin depegging.
The collaboration between Polygon zkEVM and API3 exemplifies the evolving role of oracles in scaling Ethereum and DeFi. By providing a transparent, secure, and collaborative solution, both platforms contribute to the next phase of decentralized finance, offering developers the tools they need to build innovative and reliable applications.
Jack Melnick, Head of DeFi BD at Polygon Labs, expressed excitement about API3’s deployment on Polygon zkEVM, emphasizing the positive impact on the DeFi ecosystem and the potential for a more secure and transparent future. He added: “The integration of managed dAPIs with Polygon’s scalable infrastructure marks a significant step towards a more transparent and secure future for decentralized finance.”
API3’s commitment to transitioning from traditional third-party oracle networks to first-party solutions aligns with its mission to foster a more interconnected DeFi landscape. Its suite of products, including the Airnode, dAPIs, and QRNG services, demonstrates its dedication to advancing secure and decentralized oracle solutions.
Polygon Labs, known for developing scaling solutions for Polygon protocols, plays a pivotal role in providing scalable, secure, and sustainable blockchain infrastructure for the Web3 ecosystem. The collaboration between API3 and Polygon Labs symbolizes a pivotal step toward realizing the full potential of smart contracts and decentralized finance.
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