In a big transfer for the decentralized finance (DeFi) ecosystem, API3 has unveiled a managed information feed service designed to bolster Complete Worth Locked (TVL) progress on the Polygon zkEVM community. API3’s progressive push oracle answer, coupled with Polygon’s scaling infrastructure, goals to offer builders with a safer, clear, and environment friendly technique of accessing real-time market information for his or her DeFi purposes.
The Polygon zkEVM community, launched earlier this yr, goals to revolutionize DeFi by leveraging zero-knowledge proofs and sustaining Ethereum Digital Machine (EVM) equivalence. API3, a number one blockchain oracle supplier, has been collaborating with Polygon zkEVM since April 2023, providing first-party oracle companies to boost the community’s capabilities.
Remodeling DeFi Oracle Panorama
The centerpiece of this collaboration is the introduction of managed decentralized APIs (dAPIs) on the API3 Market. This service empowers builders with entry to decentralized information feeds delivered by first-party oracle nodes, supporting native-chain aggregation. These information feeds are crucial for lending protocols and perpetual decentralized exchanges (DEXs) that depend on correct and well timed market information for his or her operations.
Conventional DeFi purposes typically use push-type oracles to safe their TVL, however these options include limitations akin to excessive charges, supply opacity, and potential vulnerabilities. API3’s new push oracle answer goals to rectify these points. It operates on a first-party structure, permitting for seamless migration of DeFi protocols from different EVM chains to Polygon zkEVM. This transition is crucial for scaling DeFi to a broader viewers.
API3’s push oracle answer is constructed across the Airnode first-party oracle node, which eliminates intermediaries and ensures direct sourcing of cryptographically signed information onto the blockchain. This design enhances information supply transparency, reliability, and integrity. Push oracles have traditionally performed a pivotal function within the DeFi panorama, and API3’s method introduces new requirements that align incentives throughout information suppliers, networks, and decentralized purposes.
Boosting DeFi Development on Polygon zkEVM
The managed dAPIs on the API3 Market provide a various array of real-world information, together with cryptocurrencies, foreign exchange, equities, and commodities. Notable tasks akin to QuickSwap Perps, Dovish, and MantisSwap have already built-in managed dAPIs to boost their safety mechanisms, pricing accuracy, and safety in opposition to stablecoin depegging.
The collaboration between Polygon zkEVM and API3 exemplifies the evolving function of oracles in scaling Ethereum and DeFi. By offering a clear, safe, and collaborative answer, each platforms contribute to the subsequent part of decentralized finance, providing builders the instruments they should construct progressive and dependable purposes.
Jack Melnick, Head of DeFi BD at Polygon Labs, expressed pleasure about API3’s deployment on Polygon zkEVM, emphasizing the optimistic impression on the DeFi ecosystem and the potential for a safer and clear future. He added: “The combination of managed dAPIs with Polygon’s scalable infrastructure marks a big step in direction of a extra clear and safe future for decentralized finance.”
API3’s dedication to transitioning from conventional third-party oracle networks to first-party options aligns with its mission to foster a extra interconnected DeFi panorama. Its suite of merchandise, together with the Airnode, dAPIs, and QRNG companies, demonstrates its dedication to advancing safe and decentralized oracle options.
Polygon Labs, recognized for growing scaling options for Polygon protocols, performs a pivotal function in offering scalable, safe, and sustainable blockchain infrastructure for the Web3 ecosystem. The collaboration between API3 and Polygon Labs symbolizes a pivotal step towards realizing the total potential of sensible contracts and decentralized finance.
