Umami DAO Integrates Chainlink Data Streams to Power GM Vault Strategies
We’re excited to reveal that Umami DAO — a DeFi project at the forefront of refining yield strategies — has successfully integrated Chainlink Data Streams on Arbitrum mainnet. This integration incorporates the industry-standard pull-based low-latency oracle solution provided by Chainlink, enabling Umami’s GM vaults to offer liquidity providers a significantly improved experience. With this integration leveraging on-demand access to high-frequency market data that is secured by a decentralized and transparent infrastructure, our vaults can now execute trading operations in a more accurate and timely manner.
The integration initially involves the following Chainlink Data Streams: ETH/USD, LTC/USD, DOGE/USD, and XRP/USD. These were selected for their premium data delivery and reliability, leveraging Chainlink’s battle-tested oracle infrastructure, which is renowned for maintaining consistent performance and heightened security, particularly during events like exchange downtimes, flash crashes, and data manipulation attacks via flash loans.
Our GM vaults, developed on top of the GMX platform, are a significant step forward in the realm of liquidity provisioning. They enable users to contribute liquidity to the GM pools with a single asset — USDC and ETH at launch. This streamlined approach not only simplifies the process for liquidity providers but also significantly optimizes the returns by participating in 4 different markets. Importantly, our vaults actively manage hedging, minimizing complexity and enabling liquidity providers to focus solely on their single-asset investment.
In order to ensure the accuracy and precision of GM vaults’ hedging strategies, it was crucial for us to obtain the most reliable high-frequency market data, underpinned by a system that is inherently decentralized and transparent.
Chainlink Data Streams stood out for their critical features:
Sub-second price resolutions:
With the capability to deliver data in sub-second timings, Chainlink Data Streams ensure that user transactions are efficient without compromising the decentralized and transparent values of Web3.
Protection against frontrunning:
Chainlink Data Streams utilize data sources free from conflicts of interest and a secure commit and reveal scheme to help safeguard against malicious price manipulation and trading practices.
Tested and proven infrastructure:
With its long-standing history of reliability, Chainlink has facilitated over $9 trillion in on-chain transaction volume, supporting numerous leading DeFi applications with its secure and reliable data.
As we continue to evolve our strategies and expand our products at Umami DAO, we are actively exploring ways to extend our use of the Chainlink platform. In addition to the current integration, we are considering the adoption of additional Chainlink Data Streams to further enhance our products.
Our roadmap also includes the possibility of expanding our services to other blockchain networks, leveraging Chainlink’s capabilities to maintain consistent performance and security across multiple chains. Looking ahead, we are interested in the benefits that other Chainlink services, such as Chainlink Verifiable Random Function (VRF) and Cross-Chain Interoperability Protocol (CCIP), could offer.
While these are considerations for the future, our current focus remains on maximizing the value of our existing integration with Chainlink. This approach aligns with our dedication to providing secure, reliable, and advanced DeFi solutions to our users.
“Our rationale for choosing Chainlink was driven by their record of unparalleled performance and security. By integrating Chainlink Data Streams, Umami DAO reinforces its pledge to deliver DeFi products that are not only secure and fair but also set a new benchmark for yield strategies,” says Toki, Lead Developer at Umami DAO.
About Chainlink
Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $9 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.
Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.
