GMX Allocates 1.2% of Revenue to Chainlink Network, TVL Makes Impressive Recovery

• GMX proposed to make Chainlink the oracle partner for its V2 and allocate 1.2% of protocol fees earned to the network.
• GMX’s trading activity saw a 30% surge, with its TVL showing a recovery since the USDC depegging fiasco.
• GMX’s native token registered 10.57% gains in the past month.

GMX Proposes Chainlink as Oracle Partner

Popular derivative exchange, GMX has proposed to make Chainlink [LINK] the oracle partner of its V2, allocating 1.2% of protocol fees earned by GMX to the Chainlink Network for the future development of their low-latency oracle solution. The main economic criterion for this proposal was to bring more decentralization and enable high-speed DeFi applications like derivatives which are restricted by latency challenges.

Increased Trading Activity & TVL

Data from Token Terminal showed a decent growth in GMX’s trading activity with its volume surging nearly 30% to $470 million since the start of April, resulting in an increase in revenue collected (protocol fees) by 35%. Furthermore, The total value locked (TVL) on DEX’s smart contracts exhibited a promising recovery and retraced all its losses since the USD Coin [USDC] depegging fiasco, logging weekly gains of 3.28%. At press time, GMX was also leading in terms of TVL among all derivative exchanges.

GMX Native Token Price Performance

At press time, GMX’s native token had fallen 2.76%, however it managed to recover and post 30-day gains of 10.57%. This shows that despite recent volatility, investors are still bullish on the coin’s prospects with many expecting it to hit new highs soon given their recent proposals and increased trading activity on their platform.

Low Latency Oracle Solution Testing Phase

Furthermore, as part of their endeavor towards bringing more decentralization and enabling high-speed DeFi applications like derivatives, Chainlink has been working on its low-latency oracle solution which is currently being tested on Arbitrum testnet for beta version release soon – with GMX being proposed as exclusive launch partner once released publicly .

Conclusion

Overall, it can be said that although there is still some volatility present within crypto markets due to external factors such as market sentiment etc., companies like GMX are making great strides in terms of increasing user adoption while also driving more decentralization through various initiatives such as partnering up with Chainlink and offering innovative solutions like low latency oracles etc., thus creating an environment which is conducive for further growth going forward into 2021 and beyond!