Chainlink and Loopring will unite efforts and integrate oracles in v3 zkRollup DEX protocol.
Chainlink and Loopring are ready to offer new features. The relevant announcement appeared on the Twitter handles of both parties.
The integration between @loopringorg & Chainlink is live! Chainlink oracles are feeding the LRC-ETH price on-chain to ensure relayers stake enough LRC. This allows Loopring DEXs to scale off-chain via zkRollups, yet remain secure using economic incentives. https://t.co/hYsWLDnnq6
— Chainlink (@chainlink) December 27, 2019
Their integration is all about creating “a faithful LRC/ETH price feed for DEX owners to anchor their LRC economic security staking.”
The mutual project will entail the following:
- Loopring will use Chainlink oracles to achieve protocol-level security parameters (it is already in place);
- Loopring’s DEXes with the links to Chainlink price feeds will support advanced order types, for example, Stop Limit orders;
- Loopring-based DEXes will provide inputs into Chainlink’s oracle network, allowing trading activity on Ethereum, through the layer 2 zkRollup.
“Working with Chainlink for v3’s oracle requirements made perfect sense, and the process has been smooth and tailored to our use case. We will continue advancing the inherently aligned interests of exchange protocols and oracle networks. Both well aware that a system is only as secure as its weakest link. More than anything, we appreciate the fact that they are equally unwilling as us to compromise on security guarantees — that’s what stands out,” says Daniel Wang, co-founder of Loopring.
The next integration step will aim at engaging more products and services. Such as more extensive types of orders where users need to follow price feeds for trading pairs to take action. And information on token prices for the Loopring Hebao wallet and DEX to set quotas for transactions. Besides, Loopring’s DEXs will supply reliable source data through the DEX browser.
For the uninitiated, Chainlink is an Oracle network. It functions as a bridge between smart contracts and offline applications to provide access to resources outside the network such as data channels, web interfaces, or retail payments. With the help of oracles, it rechecks real-world data and transfers it on-chain.
Loopring is a decentralized exchange protocol built on Ethereum. It shields its customers from counterparty risk and reduces the trading costs.
All in all, Chainlink is progressing. Recently, Altcoin Buzz covered the team’s tour across Asia.