- API3 designed a push oracle solution based on first-party architecture
- This enables DeFi protocols using push oracles to migrate to Polygon zkEVM easily
Blockchain oracle provider API3, which has been serving Polygon zkEVM since April this year, introduced managed, multisource decentralized data feeds (dAPIs) with native-chain aggregation to drive value growth on Polygon, Bankless Times learned from a press release.
Perpetual DEXs and lending protocols require real-time market data, which an oracle must bring on-chain. Most DeFi apps still use push-type oracles to secure their total value locked (TVL), which incur high fees. What’s more, transparency is limited or vulnerabilities surface.
Addressing the challenges
API3 designed a push oracle solution based on first-party architecture, which enables DeFi protocols that are currently using such oracles to migrate to Polygon zkEVM easily. This facilitates broader DeFi adoption and scaling.
The first-party node, Airnode, does away with middlemen and offers a more efficient and secure way of bringing real-time market data on-chain. The solution uses data directly from the source. Providers operate the oracle nodes and bring cryptographically signed data onto the blockchain.
A new industry standard
API3’s innovative push oracle offers direct access to crypto, equities, forex, commodities, and other real-world data. While developers have been using dAPIs on Polygon zkEVM for some time, they now have access to multi-source, aggregated feeds directly on-chain.
The future of DeFi on Polygon zkEVM
All developers need to do is read the feed’s proxy contract address if they want to use managed dAPIs. The feed is imported to the dApps contracts. The proxy address provides price reference data to the smart contract function.
Managed dAPIs eliminate monitoring, maintenance, gas management, and other operational factors. The partnership between Polygon zkEVM and API3 testifies to oracles’ critical role in scaling the Ethereum Mainnet. Innovative oracles will provide improved transparency and security with first-party oracle solutions.
Jack Melnick, Head of DeFi BD, Polygon Labs commented:
It’s very exciting to see API3 deploying on Polygon zkEVM, enhancing the DeFi ecosystem with an innovative push oracle solution. The integration of managed dAPIs with Polygon’s scalable infrastructure marks a significant step towards a more transparent and secure future for decentralized finance.
