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Synthetix (SNX) Assets Rates Now Powered by Chainlink (LINK) Oracles

One more leading DeFi protocol, Synthetix, has advanced its level of decentralization by expanding Chainlink (LINK) integration

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Cover image via cryptocomes.com

One of the flagship instruments of the ongoing DeFi craze, Synthetix (SNX), has implemented a new system of price oracles in its mechanism. Now it utilizes Chainlink (LINK) solutions in accordance with Synthetix Improvement Proposal (SIP) 36.

Accurate prices for all synths

According to the official announcement by Synthetix Protocol (SNX), the eight-month process of Chainlink (LINK) oracles implementation has been accomplished successfully. Now, Chainlink (LINK) decentralized oracles broadcast to Synthetix instruments all prices for crypto-based and ForEx-based synths (synthetic assets).

Previously, Chainlink (LINK) tools already worked in some commodities-backed and FX synthetic assets, and this integration proved to be successful and profitable:

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.

The integration of a full-fledged set of Chainlink oracles is one more step toward the ultimate level of decentralization of Synthetix. As explained in an introductory blog post, this release removes all dependence on the Synthetix core team for maintenance of the oracle infrastructure.

Synthetix integrates Chainlink's oracle solutions
Image by Synthetix

Additionally, the new solution will guarantee the accuracy of prices for traders onboarded by Synthetix.Exchange. Broadcasting up-to-date market prices will eliminate the chances of unfair arbitrage.

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From oracles to decentralization

As covered by CryptoComes previously, one month ago, Synthetix Foundation was decommissioned. It was replaced by three independent DAOs tasked with grants approval, system development and products progress.

👉 MUST READ Synthetix Foundation (SNX) Decommissioned, Replaced by Three DAOs. What Does This Mean?related article image

Switching to fully decentralized governance is a powerful trend in the turbulent DeFi realm. For instance, Aave Protocol (LEND), the pioneering ecosystem for decentralized lending/borrowing, has initiated the process of governance transition to the community.

The first decentralized governance proposal referendums for Aave Protocol (LEND) were organized through the instruments of Ethereum's Ropsten testnet.

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Vladislav Sopov

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)