The Role of Circuit Breakers in Protecting Onchain Markets
The Role of Circuit Breakers in Protecting Onchain Markets
馃敀 Safeguarding Web3 Markets
Circuit breakers are emergency measures designed to temporarily halt trading activity in financial markets during periods of extreme volatility or abnormal events. In the onchain ecosystem, circuit breakers can be implemented for tokenized assets, wrapped assets, and decentralized finance (DeFi) markets. For tokenized assets, circuit breakers can prevent minting if there is insufficient collateral. For wrapped assets, they can account for discrepancies in the 1:1 parity between wrapped and base assets. In DeFi markets, automated circuit breakers can halt trading for specific assets during volatile periods to calm activity and allow for liquidity adjustments. As the Web3 industry matures, circuit breakers will play a crucial role in providing cryptographic guarantees and protecting users against severe outcomes during abnormal events.
馃敀 Web3 Watchtower: Circuit Breakers 馃敀 Circuit breakers are often the last line of defense for critical infrastructure: data warehouses, financial markets, & more. The onchain ecosystem is no exception. The role of circuit breakers and how they protect onchain markets:
馃敀 Chainlink Launches Privacy Standard for Blockchain Transactions
**Chainlink has introduced a privacy standard that enables confidential smart contracts on any blockchain.** The solution addresses a critical barrier to institutional adoption: blockchain's default transparency. While transparency builds trust, it prevents institutions from protecting proprietary strategies and sensitive client data. **How it works:** - Computations run in trusted execution environments (TEEs) for privacy and performance - Decentralized oracle networks provide enhanced security - Advanced cryptographic techniques ensure verifiability Sensitive data and business logic remain fully confidential while maintaining proof that actions were executed correctly. This development enables institutions to leverage blockchain technology without compromising confidentiality, potentially accelerating enterprise adoption of Web3 infrastructure.
Chainlink Expands Across Major Platforms with Bank of England Partnership
Chainlink recorded 12 new integrations across five blockchains this week, including BNB Chain, Ethereum, Polygon, Robinhood Chain, and Solana. **Key Developments:** - **Major Partnerships**: New integrations with [Ondo Finance](https://twitter.com/OndoFinance), [Polymarket](https://twitter.com/Polymarket), and [Robinhood](https://twitter.com/RobinhoodApp) - **Institutional Recognition**: Bank of England selected Chainlink for its Synchronisation Lab to support synchronized settlement between central bank money and onchain securities - **Regulatory Milestone**: CFTC appointed Sergey Nazarov to its Innovation Advisory Committee - **Market Expansion**: LINK futures launched on CME Group The Bank of England's Synchronisation Lab aims to demonstrate use cases for synchronisation in financial infrastructure. Ondo Finance adopted Chainlink as its official data oracle, enabling tokenized U.S. equities like QQQon and TSLAon to be used across Ethereum DeFi with institutional-grade data. These developments represent continued adoption of Chainlink's oracle services across traditional finance and crypto platforms.
Polymarket Launches 5-Minute Crypto Markets with Chainlink Data Streams
Polymarket has expanded its rapid trading offerings by introducing 5-minute crypto markets, powered by Chainlink's infrastructure. This follows the success of their 15-minute markets launched in September 2025. **Key Features:** - Markets secured by Chainlink Data Streams - Supports hundreds of crypto trading pairs - Near-instant settlement capabilities - Live on Polygon mainnet The integration combines Chainlink Data Streams and Automation to accelerate market resolutions while maintaining robust security. This represents the latest development in Polymarket and Chainlink's ongoing partnership to enhance prediction market accuracy and speed.
馃攼 Live Classes: Confidential Computing & Private Transactions
**Two live technical workshops next week focus on privacy-preserving blockchain technologies:** - **Tuesday, 9AM ET**: [Making Confidential HTTP Requests with CRE](https://www.youtube.com/watch?v=lbojKfsM-94) - **Wednesday, 9AM ET**: [Making Private Transactions with Confidential Compute](https://www.youtube.com/watch?v=sfzY3iDJT5I) These sessions will demonstrate how to implement confidential computing solutions for secure data handling and private transaction execution in decentralized applications.
Chainlink Opens Privacy Standard for Developer Integration
Chainlink has announced that developers can now begin building with their new privacy standard. The initiative is being promoted through their hackathon schedule, signaling a push to expand privacy-focused development capabilities within the Chainlink ecosystem. **Key Points:** - Privacy standard now available for developer implementation - Integration opportunities through Chainlink's hackathon program - Aims to enhance privacy features for decentralized applications [Learn more and register](http://chain.link/hackathon/schedule)