API3, a pioneering blockchain oracle supplier championing the shift from typical third-party oracle networks to first-party oracle options, has rolled out its managed information feed service. This service is designed to assist the expansion of Whole Worth Locked (TVL) on Polygon zkEVM, an initiative by Polygon Labs, a pacesetter in growing Ethereum scaling options for Polygon protocols.
This growth comes within the wake of Polygon zkEVM’s launch earlier this yr, which aimed to harness the capabilities of zero-knowledge proofs whereas guaranteeing EVM equivalence. Since April 2023, API3 has been on the forefront, providing first-party oracle companies to Polygon zkEVM. The latest unveiling of managed dAPIs on the API3 Market now empowers builders with entry to multi-source, decentralized information feeds (dAPIs) delivered by first-party oracle nodes, full with native-chain aggregation.
The DeFi panorama, with lending protocols and perpetual DEXs at its core, hinges on real-time market information. This information necessitates on-chain integration by way of an oracle. A good portion of DeFi functions, representing tens of billions in TVL, predominantly depend on push-type oracles. Nevertheless, current blockchain oracles usually include excessive charges and restricted supply transparency, generally introducing vulnerabilities.
Addressing these challenges, API3 has crafted a novel push oracle resolution centered round first-party structure. This innovation facilitates DeFi protocols, at the moment utilizing push oracles on different EVM chains, to seamlessly transition to Polygon zkEVM. The transfer is poised to speed up the adoption and scaling of DeFi, doubtlessly reaching the subsequent billion customers.
API3’s groundbreaking push oracle is constructed across the Airnode first-party oracle node. This design eliminates the necessity for intermediaries, paving the way in which for a safer and extra environment friendly methodology to carry real-time market information on-chain. With options like native-chain aggregation and multi-source information feeds, builders can faucet into extra reliable information, minimizing downtime and enhancing information accuracy.
In a departure from conventional oracle designs that contain third-party node operators, API3’s first-party push oracle sources information immediately from the origin. These oracle nodes, managed by the info suppliers themselves, make sure that cryptographically signed information is built-in onto the blockchain. This strategy gives unparalleled information supply transparency, setting a brand new business benchmark.
Outstanding DeFi platforms like Aave, Compound, and varied DEXs have traditionally relied on push oracles. However API3’s progressive push oracle is ready to redefine the enjoying discipline. This mannequin harmonizes the pursuits of information suppliers, networks, and dApps. The introduction of API3’s managed dAPIs heralds a brand new business customary, granting direct entry to a various vary of real-world information, encompassing crypto, foreign exchange, equities, and commodities.
The DeFi ecosystem is already benefiting from the DAO-managed oracle service of API3. Platforms like QuickSwap Perps and Dovish, a perpetual swap protocol, are leveraging dAPIs for exact pricing. MantisSwap, a DEX specializing in secure belongings buying and selling, employs dAPIs to bolster their safety mechanism towards stablecoin depegging, highlighting the improved security measures of dAPIs for DeFi functions.
Tropykus, a lending and borrowing dApp that branched out from AAVE V2, utilized self-funded dAPIs for a swift launch on Polygon zkEVM. With dAPIs requiring minimal alterations to tried-and-tested code, builders achieve a aggressive edge, doubtlessly enabling fast deployment on rising networks.
API3’s collaboration with Polygon zkEVM underscores the pivotal position oracles play in scaling Ethereum. The upcoming technology of blockchain oracles guarantees heightened safety and transparency by means of first-party oracle options. API3 DAO stays passionate about exploring the huge potential of decentralized finance because the capabilities of good contracts come to fruition.
Jack Melnick, Head of DeFi BD at Polygon Labs, remarked, “It’s totally thrilling to see API3 deploying on Polygon zkEVM, enhancing the DeFi ecosystem with an progressive push oracle resolution. The combination of managed dAPIs with Polygon’s scalable infrastructure marks a big step in the direction of a extra clear and safe future for decentralized finance.”
Picture supply: Shutterstock