Layer Two DEX FalconSwap Integrates Chainlink Price Feeds
We’re excited to announce that FalconSwap’s layer two (L2) decentralized exchange (DEX) is integrating the industry-leading Chainlink Price Feeds live on testnet, with plans to soon launch on mainnet. FalconSwap’s L2 platform matches orders on-chain and submits a batched set of trades to the Uniswap AMM, significantly reducing gas costs. When there is sufficient liquidity available, users can swap assets directly on falconswap.exchange at the current market price (as reported by Chainlink decentralized price oracles) for near zero gas costs, no slippage, and at much greater speeds.
The trading landscape is changing in the blockchain space, moving away from centralized exchanges towards more decentralized platforms. However, the growth of decentralized options is also responsible for the massive rise in Ethereum gas prices, leaving many traders left out of the booming DeFi ecosystem. FalconSwap solves this problem as a gas-efficient protocol for trading assets using the current liquidity available across multiple AMM pools like Uniswap. This empowers smaller traders to participate in Ethereum DEX trading without paying prohibitive fees or needing a centralized order book.
“By batching trades for Uniswap and other supported DEXs, we ensure that everyone, even small retail traders, have access to all DeFi token pairs without spending exorbitant gas fees,” said Eric, Co-Founder of FalconSwap. “To push our capabilities to the next level, the Chainlink integration ensures that our users can swap tokens at fair market prices with no slippage directly on FalconSwap.”
For example on the DAI/ETH pair, if someone wants to sell DAI and another person wants to buy it, FalconSwap will match all such trades directly on our platform. Whatever cannot be matched will be settled on the underlying DEX protocol, resulting in much lower gas fees.
To build a zero slippage DEX aggregator, we need secure and reliable price oracles to make real-time price feeds on crypto-assets available directly on-chain. After reviewing various blockchain oracle solutions in the market, Chainlink Price Feeds stood out as the most optimal for FalconSwap, providing us with:
- High-quality data sourced from premium off-chain aggregators, ensuring our price feeds reflect an aggregate of all types of trading environments not just a single exchange.
- Sybil-resistant oracle node operators run by leading security and blockchain DevOps teams, providing us with highly secure reliable oracle services
- Decentralization at the oracle and data source level, bringing high availability and manipulation resistance to the sourcing and delivery of data feeds to our platform.
- Proven oracle Infrastructure securing billions of dollars in value for top DeFi applications, showing its ability to secure real value live on mainnet.
The FalconSwap-Chainlink Integration
Here’s how FalconSwap will work in conjunction with Chainlink Oracles:
- The next version of FalconSwap will use Chainlink Price Feed oracles to determine the fair market price of token pairs.
- Both buyers and sellers will sign transactions to trade on FalconSwap.
- The orders will match on-chain with very low gas fees. The gas fees required to match exclusive FalconSwap orders are significantly lower than direct Uniswap trading, making the order matching service on FalconSwap viable for small orders.
- Chainlink Price Feeds will ensure FalconSwap can provide zero slippage trades at the current fair market price as aggregated across all exchanges.
FalconSwap already has a zero gas fees trading platform available on Ethereum’s Ropsten testnet. You can test it here: https://falconswap.exchange/. We’re excited to continue building out its functionality and working with Chainlink to become DeFi’s trading platform of choice for buying and selling tokens without compromising on speed, cost, or asset security.
Chainlink is the most widely used and secure way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink introduces a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
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