Tulip, a yield aggregation and leveraged yield farming protocol, introduced right this moment it’s integrating Chainlink Worth Feeds. By integrating the popular oracle network, Tulip will achieve entry to a high-quality, tamper-proof supply of economic market information wanted to safe leveraged yield farm positions. In consequence, each lenders and debtors could have higher assurance that dangerous positions will probably be correctly liquidated.
“We selected Chainlink as our go-to oracle resolution due to its no-compromise method to safety and reliability, demonstrated by its verifiable historical past of accuracy and resilience throughout excessive market volatility, trade/API downtime, and information manipulation assaults such by way of flash loans. Moreover, Chainlink Worth Feeds on Solana can publish oracle updates on-chain at sub-second frequencies and with full market protection to additional guarantee value information is reflective of real-time, international market circumstances.”
– The Tulip Team
Securing Liquidations With Chainlink Worth Feeds
A yield aggregation platform powered by Solana, Tulip presents superior auto-compounding vault methods. By making the most of Solana’s low-cost, high-speed blockchain community, yield could be incessantly reinvested into vault methods.
Stakers then profit from larger returns with out requiring lively administration. Tulip additionally presents leveraged yield farming for customers to extend their yield when depositing into two-sided liquidity swimming pools.
The leveraged yield farming platform goals to attach lenders—who earn an auto-compounded variable deposit fee yield—with debtors who want to improve their yield farming income by paying to borrow extra belongings that then get deposited right into a farm.
When a leveraged yield farm place is opened, a person provides and borrows in opposition to their collateral, depositing each belongings right into a liquidity pool to earn liquidity mining incentives and buying and selling charges.
Opening a place leads to the creation of a collateralized mortgage that should preserve a predefined loan-to-value (LTV) ratio. If the worth of the collateral drops beneath an unsafe degree, then the collateral is liquidated and bought to pay again the lenders.
With the intention to settle when yield farming positions ought to be liquidated, Tulip requires value information to find out the worth of each the collateral and borrowed belongings, that are used to calculate the LTV ratio.
Nonetheless, as a result of blockchain oracle drawback, sensible contracts can’t natively entry off-chain information resembling aggregated market costs. Sensible contracts require an extra piece of infrastructure often known as an oracle to fetch exterior information and ship it again on-chain.
As a result of liquidations play such a key position in managing the chance publicity of the platform, Tulip’s oracle resolution must additionally mixture from many oracle nodes and sources to make sure accuracy, uptime, and resistance to manipulation.
After wanting into completely different oracle options, the Tulip crew decided that Chainlink might present the right mix of premium information high quality, strong oracle safety, and speedy replace frequency to assist guarantee its liquidation mechanism follows markets in real-time.
Causes for selecting Chainlink Worth Feeds embrace:
- Excessive-High quality Information — information is sourced from quite a few premium information aggregators, offering value information that’s aggregated from a whole lot of exchanges, weighted by quantity, and refined from outliers and suspicious volumes.
- Safe Node Operators — unbiased, security-reviewed, and Sybil-resistant oracle nodes run by main blockchain DevOps groups, information suppliers, and conventional enterprises guarantee reliability, even throughout excessive fuel costs and excessive community congestion.
- Decentralized Community — decentralized on the information supply, oracle node, and oracle community ranges, Chainlink presents sturdy protections in opposition to downtime and tampering by both the info supplier or the oracle community.
- Blockchain Agnostic – Chainlink’s oracle networks function on the native pace of the chain the place information is being delivered with out cross-dependencies on every other blockchain community. Chainlink Worth Feeds on Solana don’t have any dependencies on different chains, permitting for high-frequency updates at decrease prices.