Loopring’s 3.0 DEX protocol integrates Chainlink oracle service

With Loopring v3 recently deployed on Ethereum mainnet, the team’s attention has turned toward an important consideration: oracles...

Loopring’s 3.0 DEX protocol integrates Chainlink oracle service

Loopring, an open protocol for building decentralized exchanges (DEXs), has announced its collaboration with decentralized oracle service Chainlink in Loopring’s v3 zkRollup DEX protocol.

The first integration, which is now live on the Ethereum mainnet is an LRC/ETH price feed for DEX owners to anchor their LRC economic security staking. The most relevant contract being the MovingAveragePriceProvider.

Last week, Loopring announced WeDEX as the first decentralized exchange to go live with version 3.0 of its protocol which features zkRollups.

Chainlink and Loopring, in their own unique ways, both operate at the critical juncture between on-chain and off-chain environments: Chainlink as a reliable, redundant oracle network to feed off-chain data to on-chain contracts; Loopring as a zero-knowledge protocol validating off-chain exchange activity on-chain.

The Loopring/Chainlink collaboration will initially include:

Chainlink’s LRC/ETH reference contract

Chainlink has created a reference contract powered by its decentralized network of oracles to provide the LRC/ETH price. The price is pushed on-chain at any 5% deviation from the previous price, or, with a weekly heartbeat update should that 5% level of volatility not arise. To begin with, the LRC/ETH feed will be provided by seven Chainlink nodes, drawing their data from a multitude of sources including CoinGecko, CoinMarketCap, CoinAPI, and more.

For details on how Chainlink oracles are used to anchor LRC token security staking click here.

“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.”
– Daniel Wang, Co-Founder of Loopring

The next areas for Chainlink integration on Loopring will focus on more products & services including:

“We’re excited to work with an ambitious project like Loopring and provide their DEX protocol access to secure and reliable data oracles in a customizable manner that fits their needs. By adding decentralized oracles to their off-chain solution, Loopring is pioneering the next iteration of secure, scalable DEX protocols. We’re thrilled to aid their team in making this a fully-functional reality.”
– Sergey Nazarov, Co-Founder of Chainlink