Tulip, a yield aggregation and leveraged yield farming protocol, introduced right this moment it’s integrating Chainlink Value Feeds. By integrating the popular oracle network, Tulip will achieve entry to a high-quality, tamper-proof supply of economic market knowledge wanted to safe leveraged yield farm positions. Because of this, each lenders and debtors can have larger assurance that dangerous positions can 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 knowledge manipulation assaults such via flash loans. Moreover, Chainlink Value Feeds on Solana can publish oracle updates on-chain at sub-second frequencies and with full market protection to additional guarantee worth knowledge is reflective of real-time, world market circumstances.”
– The Tulip Team
Securing Liquidations With Chainlink Value Feeds
A yield aggregation platform powered by Solana, Tulip provides superior auto-compounding vault methods. By profiting from Solana’s low-cost, high-speed blockchain community, yield might be continuously reinvested into vault methods.
Stakers then profit from greater returns with out requiring lively administration. Tulip additionally provides 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 charge yield—with debtors who want to enhance their yield farming earnings by paying to borrow further property that then get deposited right into a farm.
When a leveraged yield farm place is opened, a consumer provides and borrows towards their collateral, depositing each property right into a liquidity pool to earn liquidity mining incentives and buying and selling charges.
Opening a place ends in the creation of a collateralized mortgage that should keep a predefined loan-to-value (LTV) ratio. If the worth of the collateral drops under an unsafe degree, then the collateral is liquidated and offered to pay again the lenders.
With a view to settle when yield farming positions needs to be liquidated, Tulip requires worth knowledge to find out the worth of each the collateral and borrowed property, that are used to calculate the LTV ratio.
Nevertheless, as a result of blockchain oracle drawback, sensible contracts can not natively entry off-chain knowledge reminiscent of aggregated market costs. Sensible contracts require an extra piece of infrastructure referred to as an oracle to fetch exterior knowledge and ship it again on-chain.
As a result of liquidations play such a key position in managing the danger publicity of the platform, Tulip’s oracle resolution must additionally combination from many oracle nodes and sources to make sure accuracy, uptime, and resistance to manipulation.
After wanting into totally different oracle options, the Tulip group decided that Chainlink may present the right mix of premium knowledge high quality, strong oracle safety, and fast replace frequency to assist guarantee its liquidation mechanism follows markets in real-time.
Causes for selecting Chainlink Value Feeds embody:
- Excessive-High quality Information — knowledge is sourced from quite a few premium knowledge aggregators, offering worth knowledge that’s aggregated from a whole bunch 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, knowledge suppliers, and conventional enterprises guarantee reliability, even throughout excessive gasoline costs and excessive community congestion.
- Decentralized Community — decentralized on the knowledge supply, oracle node, and oracle community ranges, Chainlink provides sturdy protections towards downtime and tampering by both the information supplier or the oracle community.
- Blockchain Agnostic – Chainlink’s oracle networks function on the native pace of the chain the place knowledge is being delivered with out cross-dependencies on every other blockchain community. Chainlink Value Feeds on Solana haven’t any dependencies on different chains, permitting for high-frequency updates at decrease prices.