API3, a pioneering blockchain oracle supplier championing the shift from standard third-party oracle networks to first-party oracle options, has rolled out its managed knowledge 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 improvement comes within the wake of Polygon zkEVM’s launch earlier this 12 months, which aimed to harness the capabilities of zero-knowledge proofs whereas making certain EVM equivalence. Since April 2023, API3 has been on the forefront, providing first-party oracle providers to Polygon zkEVM. The latest unveiling of managed dAPIs on the API3 Market now empowers builders with entry to multi-source, decentralized knowledge 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 knowledge. This knowledge necessitates on-chain integration by way of an oracle. A good portion of DeFi purposes, representing tens of billions in TVL, predominantly depend on push-type oracles. Nonetheless, current blockchain oracles typically include excessive charges and restricted supply transparency, typically introducing vulnerabilities.
Addressing these challenges, API3 has crafted a novel push oracle answer centered round first-party structure. This innovation facilitates DeFi protocols, at present 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 following 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 best way for a safer and extra environment friendly methodology to carry real-time market knowledge on-chain. With options like native-chain aggregation and multi-source knowledge feeds, builders can faucet into extra reliable knowledge, minimizing downtime and enhancing knowledge accuracy.
In a departure from conventional oracle designs that contain third-party node operators, API3’s first-party push oracle sources knowledge immediately from the origin. These oracle nodes, managed by the information suppliers themselves, be sure that cryptographically signed knowledge is built-in onto the blockchain. This strategy gives unparalleled knowledge supply transparency, setting a brand new business benchmark.
Distinguished DeFi platforms like Aave, Compound, and varied DEXs have traditionally relied on push oracles. However API3’s progressive push oracle is about to redefine the taking part in area. This mannequin harmonizes the pursuits of knowledge suppliers, networks, and dApps. The introduction of API3’s managed dAPIs heralds a brand new business commonplace, granting direct entry to a various vary of real-world knowledge, 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 steady belongings buying and selling, employs dAPIs to bolster their safety mechanism in opposition to stablecoin depegging, highlighting the improved safety features of dAPIs for DeFi purposes.
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 function oracles play in scaling Ethereum. The upcoming era of blockchain oracles guarantees heightened safety and transparency by way of first-party oracle options. API3 DAO stays smitten by exploring the huge potential of decentralized finance because the capabilities of sensible contracts come to fruition.
Jack Melnick, Head of DeFi BD at Polygon Labs, remarked, “It’s extremely thrilling to see API3 deploying on Polygon zkEVM, enhancing the DeFi ecosystem with an progressive push oracle answer. The mixing 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.”
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