Chainlink Data Streams Integrated by Umami Finance for Better LPs

• Umami Finance integrates Chainlink Data Streams to enhance liquidity provider experiences on Avalanche.
• The integration includes ETH/USD, LTC/USD, DOGE/USD, BTC/USD, and XRP/USD data streams.

Umami Finance has announced the integration of Chainlink Data Streams on the Avalanche (AVAX) blockchain. Umami Finance, a leader in refining yield strategies, was among the first to use this industry-standard, low-latency Oracle solution.

This strategic initiative intends to improve liquidity providers’ (LPs’) experience by increasing the accuracy and timeliness of trades completed by Umami’s GM vaults on Avalanche.

We're excited to announce that Umami, a leader in refining yield strategies, is among the first to integrate @chainlink Data Streams on @avax

This integration brings the industry-standard, low-latency oracle solution to our GM vaults on Avalanche, significantly improving… pic.twitter.com/RivtEccI4b

— Umami (@UmamiFinance) July 5, 2024

Revolutionizing Liquidity Provision with Chainlink Data Streams

The connection will initially feature data streams for prominent cryptocurrency pairs such as ETH/USD, LTC/USD, DOGE/USD, BTC/USD, and XRP/USD. Chainlink Data Streams provides a credible, neutral infrastructure by employing data providers free of conflicts of interest.

This protects LPs from undesirable market dynamics, including price manipulation and frontrunning. Umami Finance’s vaults can execute trades with sub-second precision thanks to on-demand access to high-frequency market data, which improves transaction efficiency.

Umami Finance’s GM vaults on the GMX platform now allow customers to provide liquidity using a single asset, beginning with USDC and ETH. This simplifies the liquidity provisioning procedure while optimizing returns across many marketplaces.

The vaults actively manage hedging techniques, which reduces the complexity often involved with liquidity provision.

“Chainlink Data Streams were selected for several critical features,” said an Umami Finance official. “First, sub-second pricing resolutions ensure that transactions are efficient and accurate. Second, secure commit and reveal techniques provide frontrunning protection. Finally, the proven dependability of Chainlink’s infrastructure, which has supported over $12 trillion in on-chain transaction value, demonstrates its strength and trustworthiness.”

Future Prospects and Expanded Integration

Umami Finance is looking into new ways to use Chainlink’s platform to expand its product offerings and services across other blockchain networks. In order to offer secure, dependable, and cutting-edge DeFi solutions, it is currently important to maximize the value that data streams unlock.

On the other hand, Chainlink has teamed with Fidelity and Sygnum to provide Net Asset Value (NAV) data on-chain, with the goal of increasing financial market transparency. This agreement is intended to strengthen Chainlink’s position as a key infrastructure supplier in the DeFi industry.

Chainlink’s (LINK) price has increased by 5.98% in the last 24 hours, as of this writing, to $13.11. Meanwhile, Avalanche (AVAX) has increased significantly, rising by 6.71% over the same time period to $26.85. These two cryptocurrencies are the leading crypto gainers in the real-world asset (RWA) category.