Tulip, a yield-optimized agriculture and yield aggregation protocol, today announced the integration of Chainlink Price Feeds. By integrating the popular Oracle network, Tulip will have access to a source of high-quality, tamper-proof financial market data needed to secure yield-optimized farm positions. As a result, lenders and borrowers will have greater assurance that risky positions are properly liquidated.
“We chose Chainlink as our preferred Oracle solution because of its no-compromise approach to security and reliability, demonstrated by its verifiable history of accuracy and resiliency under extreme market volatility, downtime. stop exchange / API and data manipulation attacks such as flash loans. Additionally, Chainlink Price Feeds on Solana can post Oracle updates to the channel at sub-second frequencies and with full market coverage to further ensure that price data reflects real-time global market conditions.
– The Tulip Team
Secure liquidations with Chainlink price flows
A yield aggregation platform powered by Solana, Tulip offers advanced auto-dial vault strategies. By leveraging Solana’s low-cost, high-speed blockchain network, the return can be frequently reinvested in vault strategies.
Stakers then benefit from higher returns without requiring active management. Tulip also offers leveraged yield farming for users to increase their yield when depositing into two-sided cash pools.
The Leveraged Yield Farming Platform aims to match lenders – who get an automatically compounded variable deposit rate – with borrowers who want to increase their yield-yielding farm profits by paying to borrow additional assets that are then deposited in a farm.
When a leveraged yield farm position is opened, a user provides and borrows against their collateral, depositing the two assets into a cash pool to earn cash-mining incentives and trading fees.
Opening a position results in the creation of a secured loan which must maintain a predefined loan-to-value ratio (LTV). If the value of the collateral falls below a dangerous level, then the collateral is liquidated and sold to pay off the lenders.
In order to determine when yield farming positions should be liquidated, Tulip needs price data to determine the value of both collateral and borrowed assets, which is used to calculate the LTV ratio.
However, due to the blockchain oracle problem, smart contracts cannot natively access off-chain data such as aggregate market prices. Smart contracts require an additional infrastructure called an oracle to retrieve external data and re-chain it.
Since liquidations play a key role in managing platform risk exposure, Tulip’s Oracle solution must also aggregate many Oracle nodes and sources to ensure accuracy, availability and resiliency to downtime. handling.
After examining different Oracle solutions, the Tulip team determined that Chainlink could provide the perfect blend of premium data quality, robust Oracle security, and fast update frequency to help ensure its liquidation mechanism keeps pace. markets in real time.
Reasons to choose Chainlink Price Feeds include:
- High quality data – data comes from many premium data aggregators, providing price data aggregated from hundreds of trades, volume weighted and refined from outliers and suspicious volumes.
- Secure node operators – Independent, security-controlled, Sybil-resistant Oracle nodes, managed by leading blockchain DevOps teams, data providers and traditional businesses ensure reliability even in the face of high gas prices and extreme network congestion .
- Decentralized network – Decentralized at the data source, Oracle node and Oracle network level, Chainlink offers strong protections against downtime and tampering by the data provider or the Oracle network.
- Blockchain Agnostic – Chainlink’s oracle networks operate at native chain speed where data is delivered without cross dependencies on any other blockchain network. Chainlink price feeds on Solana are independent of other channels, allowing high frequency updates at lower cost.