dYdX Introduces Chainlink LINK-USD Perpetual Contracts

Decentralized exchange dYdX is outmaneuvering the rest of the DEX sector so far when it comes to introducing premier derivatives products into DeFi. The latest such offering from the protocol’s team is LINK-USD, a perpetual contract based on the Chainlink price.

Allowing traders to bet on price movements around assets, perpetual contracts are akin to futures contracts that have no expiry. That means these derivatives, which can be margin traded, remain active until traders close their positions or get margin liquidated.

The LINK-USD Perpetual Contract is dYdX’s third such offering after releasing BTC-USD and ETH-USD products earlier this year. Notably, these USDC-settled offerings can be traded using up to 10x leverage. As for why LINK was next up on the non-custodial exchange’s derivatives slate, it’s no real surprise. 

“On a daily volume basis, LINK is the most traded token in all of DeFi,” the dYdX team said.

Embracing Chainlink’s LINK Price Feed

The perpetual contract’s rollout notably depends on Chainlink’s oracle-powered LINK-USD Price Feed, dYdX explained:

While demand is unquestionably high for LINK, we are just as excited about the underlying oracle ecosystem that Chainlink has built. As such, we are excited to share we are using Chainlink’s LINK-USD Price Feed as the oracle source for this market. Given that Chainlink’s ecosystem of data providers have proven to be extremely reliable, even in times of high volatility, we are confident that this oracle integration will perform extremely well.

It’s yet another legitimizing embrace for Chainlink this year. And it’s another example of why Chainlink has advanced considerably over the past two years. The crux? For DeFi projects like dYdX, it’s vastly easier to quickly plug into Chainlink’s already-built oracle infrastructure, e.g. the LINK-USD Price Feed, than it is to spin up solutions in-house.

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