Here’s What Chainlink Data Feeds Bring to Polygon zkEVM

Chainlink Data Feeds go live on Polygon zkEVM promising to be a game changer for DeFi on the network.

Polygon MATIC in a jar on a table a robot looking at it.
Created by Kornelija Poderskytė from DailyCoin
  • Chainlink Data Feeds are now live on Polygon zkEVM.
  • The integration promises immense benefits for Polygon zkEVM’s DeFi ecosystem.
  • The network has already experienced an uptick in DeFi activity in recent weeks.

Despite a steady growth trajectory, Polygon Labs is not slowing down efforts to bolster Polygon zkEVM, its zero-knowledge-powered Ethereum Layer 2 offering. 

On Friday, December 15, Polygon Labs disclosed that Chainlink Data Feeds are now live on Polygon zkEVM in a move that promises to be a game changer for DeFi on the network.

The Beginning of the Next DeFi Wave on Polygon zkEVM

One of the main selling points of Chainlink Data Feeds is their reliance on a decentralized network of node operators. This decentralization allows Chainlink’s price oracles to be more downtime, flash crash, and flash loan resilient, boosting the overall security of protocols that rely on its price feeds. 

In light of the increased security capabilities, several members of the Polygon community, including Polygon Labs CEO Marc Boiron, have tipped Chainlink Data Feeds to attract several leading DeFi protocols to Polygon zkEVM.

“This functionality is set to unlock the deployment of several significant DeFi protocols on Polygon zkEVM early next year,” Boiron stated, hinting at a pipeline of projects set to launch on the network to take advantage of the new Chainlink integration while remaining tight-lipped about the details.

Still, the benefits of Polygon zkEVM’s Chainlink integration are expected to go beyond just onboarding more DeFi protocols. In a Friday X post, Polygon co-founder Sandeep Nailwal suggested that with the adoption of Chainlink Data Feeds, developers were positioning the Polygon zkEVM for the expected wave of real-world asset tokenization.

“There are trillions of dollars that are poised to move onchain, and Chainlink’s CCIP will be the connection between the DeFi economy and the emerging bank blockchain ecosystem. CCIP is already being explored by some of the world’s largest financial institutions and market infrastructures like Swift, DTCC, ANZ, and more,” Naiwal wrote.

The recent Chainlink integration comes as the Polygon zkEVM network has seen an uptick in activity in recent weeks.

Polygon zkEVM DEX Volumes Peak

In November 2023, Polygon zkEVM DEX volumes reached $55.18 million, per data from Defi Llama, the highest monthly DEX volume for the network on record. The surge came amid a rush of activity on the network, which has now processed 8.59 million transactions in the nearly nine months since its launch in March 2023, per zkevm.polygonscan.com data.

Polygon zkEVM already hosts several DeFi protocols, including Quickswap, Balancer, and Clearpool. At the time of writing, L2Beat data shows that the network boasts a TVL of $117 million.

On the Flipside

  • Chainlink Data Feeds are already live on other Ethereum Layer 2 chains like Arbitrum, Optimism, and Base.

Why This Matters

Chainlink Data Feeds help make price feeds on DeFi protocols more reliable and less susceptible to manipulation. The Data Feeds going live on Polygon zkEVM will likely bolster confidence in the network’s DeFi ecosystem while encouraging more projects to jump on board.

Read this for more on Polygon zkEVM:
What Is the Bridged USDC Standard on Polygon zkEVM?

Stay up to date on the issues surrounding the recent Ledger hack:
Tether Freezes Ledger Exploiter Loot in Wild 24 Hours for DeFi

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.