Company
Date Published
Author
Kemal El Moujahid
Word count
1194
Language
English
Hacker News points
None

Summary

The DeFi derivatives market holds immense potential for value creation in Web3, with traditional derivatives markets valued at over $1 quadrillion. Chainlink aims to secure this market by developing ultra low-latency pull-based price oracles to overcome technical challenges like data latency, freshness, and privacy, which are critical for on-chain derivative platforms. These platforms rely on hybrid smart contracts that integrate blockchain logic with off-chain oracle data for accurate market data retrieval. Chainlink's new oracle solution, anticipated by year-end, promises ultra-low latency, frontrunning mitigation, and gas efficiency by generating oracle reports per block, which users can retrieve off-chain and validate on-chain. This approach reduces latency, increases data privacy, and enhances gas efficiency, while maintaining security and reliability. Leveraging high-speed data providers and Chainlink Decentralized Oracle Networks, this solution aims to address risks like Maximal Extractable Value (MEV) and improve DeFi derivatives protocols, ultimately broadening Web3's appeal and security.