We are excited to announce that after an eight-month successful implementation of Chainlink’s decentralised price oracles for our commodity and FX Synths, we have now switched the rest of our price oracles over to Chainlink as per SIP-36. This includes price feeds for all cryptocurrency and index Synths.
This marks a major milestone in the development of the Synthetix protocol, removing any centralised dependency on our core contributors in regards to running the oracle mechanism, another crucial step in transitioning to decentralised governance.
Oracles are a critical component to our success, as every trade on Synthetix is dependent on the price feeds delivered by oracles. Since integrating Chainlink’s Price Reference Data, our commodity and FX synths have successfully maintained accurate, tamperproof valuations in accordance with the real world market price of their underlying assets, even during times of high volatility.
Over time, as the value locked in Synthetix has risen, we have been able to successfully scale the security and reliability guarantees provided by Chainlink’s oracles, lowering the deviation threshold for on-chain updates to obtain even more precise prices. This has given traders on Synthetix.Exchange stronger assurances that they are always receiving the most up-to-date market price.
Since the initial integration, Chainlink has become the standard oracle mechanism powering most of DeFi, currently securing over $3B in USD value. We are confident that Chainlink will continue to be the most secure and reliable oracle mechanism in the market, providing the Synthetix protocol with strong guarantees that all assets are backed by high-quality price data with high availability, resistance to manipulation, and transparency.
Moving forward with Chainlink allows our oracle mechanism to scale up alongside the value locked up in the total debt pool, particularly across three key metrics: s...