A New Era in DeFi: PancakeSwap Integrates Chainlink’s Oracle into the Arbitrum Network

• PancakeSwap integrates Chainlink Data Streams and Automation into Arbitrum, improving prediction markets with up-to-date and secure data.

• This collaboration stands out for its ability to offer sub-second price resolution and advanced frontrunning protection.

PancakeSwap, one of the most popular decentralized exchange platforms, has just announced an integration with Chainlink Data Streams and Automation on the Arbitrum core network. This alliance is shaping up to be a breakthrough in the world of decentralized finance (DeFi), offering users access to up-to-date, high-frequency price data, essential functions for trading in the prediction markets to be launched on Arbitrum.

why did PancakeSwap choose Chainlink?

To understand the magnitude of this move, one must analyze why PancakeSwap chose Chainlink. This platform is known for its oracle solution with low latency and automation, which allows them to access fresh price and demand data at the beginning and end of each prediction round.

Chainlink Data Streams feeds to be used initially include ETH/USD, BTC/USD and ARB/USD. Chainlink was chosen because of its proven infrastructure, which offers unparalleled performance and security, even in unforeseen events such as exchange crashes, fast crashes and data manipulation attacks via flash lending.

what makes PancakeSwap so special?

This platform is a fully-featured decentralized exchange that allows users to maintain ownership of their cryptoassets by trading on-chain, exchanging assets with low fees and earning returns on staked tokens. In addition, PancakeSwap offers NFT collectibles, prediction markets and much more.

Source: pancakeswap.finance

The big challenge for PancakeSwap was to secure its prediction markets with access to high-frequency market data, backed by a decentralized and transparent infrastructure. These also required a neutral and decentralized settlement infrastructure to offer its users a fair and secure trading experience. After evaluating several solutions, PancakeSwap settled on Chainlink Data Streams, thanks to critical features such as:

Sub-second price resolutions

Chainlink Data Streams provides sub-second data delivery using battle-tested Oracle infrastructure, enabling a highly efficient user experience without compromising Web3 values such as decentralization and transparency.

Frontrunning protection

Chainlink Data Streams uses conflict-of-interest-free data sources and a compromise and disclosure architecture to protect traders and liquidity sources against malicious price manipulation and information arbitrage.

Decentralized on-chain execution

Data Streams leverages Chainlink Automation for near-instantaneous, decentralized blockchain execution, eliminating centralized points of failure during settlement and mitigating adverse selection risk.

Time-tested infrastructure

Chainlink is the most time-tested oracle solution, helping enable more than $9 trillion in blockchain transaction volume for major DeFi applications.

Higher integrity predictability

PancakeSwap’s Head Chef, Chef Mochi, expressed his enthusiasm for the integration with Chainlink Data Streams and Automation to drive PancakeSwap’s prediction markets.

Excited to announce our integration with @Chainlink Data Streams and Automation for our upcoming prediction market on @arbitrum! Stay tuned for the launch.

Learn more about how the Chainlink platform elevates DeFi with integrity and high performance. https://t.co/magLTmoM7k

— PancakeSwapEveryone's Favorite DEX (@PancakeSwap) December 19, 2023

The goal is to provide users with higher integrity prediction markets by extracting highly accurate, fresh and decentralized market data at the beginning and end of each round.

Chainlink, meanwhile, is positioned as the industry-standard decentralized computing platform powering the verifiable web.

.@PancakeSwap is integrating #Chainlink Data Streams and Automation on @arbitrum to help power its prediction markets.

How the Chainlink platform powers high-integrity and high-performance DeFi https://t.co/PFygTV754G

— Chainlink (@chainlink) December 19, 2023

It has enabled more than $9 trillion in transaction value, providing financial institutions, startups and developers worldwide with access to real-world data, off-chain computing and secure interoperability between chains on any blockchain.

Chainlink powers verifiable applications and high-integrity marketplaces for banking, DeFi, global trading, gaming and other major industries.

This collaboration between PancakeSwap and Chainlink is not just a technical breakthrough; it breaks ground for more secure, transparent and efficient predictive operations in DeFi.