Polygon zkEVM Welcomes Managed Data Feed Service to Boost TVL Growth

The developers on Polygon zkEVM will now have access to multi-source, aggregated data feeds served directly on-chain by leading data providers.

Polygon zkEVM is all set to welcome managed data feed service, which will be introduced by blockchain oracle provider, API3. The end goal is to support the growth of TVL on the network. Besides the latest offering, API3 has already been providing first-party Oracle services to Polygon zkEVM since April this year.

New Push Oracle Service for Polygon zkEVM

According to the press release shared with CryptoPotato, the introduction of managed dAPIs on the API3 Market will enable developers to access multi-source, decentralized data feeds (dAPIs) delivered by first-party oracle nodes with native-chain aggregation.

DeFi economy’s core layers include lending protocols and perpetual DEXs, which are dependent on real-time market data via oracles. But most DeFi apps still use costly push-type oracles, risking transparency and security. API3’s push oracle solution, built on first-party architecture, aims to address these issues by facilitating seamless migration of DeFi protocols from other chains to Polygon zkEVM.

Such a system is expected to increase Polygon zkEVM’s adoption and scaling for the next billion users while simultaneously mitigating challenges posed by current Oracle options.

Push oracles have played a pivotal role in DeFi apps such as Aave, Compound, and various DEXs. However, API3’s new push oracle is being touted as a transformative shift since it aligns with the incentives for data providers, networks, and dApps.

In a statement, Polygon Labs’ Jack Melnick said,

“It’s very exciting to see API3 deploying on Polygon zkEVM, enhancing the DeFi ecosystem with an innovative push oracle solution. The integration of managed dAPIs with Polygon’s scalable infrastructure marks a significant step towards a more transparent and secure future for decentralized finance.”

Polygon zkEVM Growth So Far

Polygon released its zkEMVs in March this year. It has attracted more than $46 million in TVL in the last five months, even briefly peaking at $56 million, according to data compiled by L2Beat.

Moreover, Polygon zkEVM amassed over 400,000 addresses that have participated on-chain; the figure more than doubled since July 1st alone. So far, more than $110 million has been deposited onto its mainnet.