Tulip, a yield aggregation and leveraged yield farming protocol, introduced at this time it’s integrating Chainlink Worth Feeds. By integrating the favored oracle community, Tulip will achieve entry to a high-quality, tamper-proof supply of monetary market information wanted to safe leveraged yield farm positions. In consequence, each lenders and debtors may have larger assurance that dangerous positions can be correctly liquidated.
“We selected Chainlink as our go-to oracle resolution due to its no-compromise strategy 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 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 situations.”
– The Tulip Workforce
Securing Liquidations With Chainlink Worth Feeds
A yield aggregation platform powered by Solana, Tulip affords superior auto-compounding vault methods. By making the most of Solana’s low-cost, high-speed blockchain community, yield will be incessantly reinvested into vault methods.
Stakers then profit from greater returns with out requiring energetic administration. Tulip additionally affords 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 improve their yield farming earnings by paying to borrow extra property that then get deposited right into a farm.
When a leveraged yield farm place is opened, a consumer provides and borrows in opposition to 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 purpose to settle when yield farming positions must be liquidated, Tulip requires value information to find out the worth of each the collateral and borrowed property, that are used to calculate the LTV ratio.
Nonetheless, as a result of blockchain oracle downside, good contracts can’t natively entry off-chain information reminiscent of aggregated market costs. Good 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 function 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 trying into completely different oracle options, the Tulip group 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 Knowledge — information is sourced from quite a few premium information aggregators, offering value information that’s aggregated from tons of of exchanges, weighted by quantity, and refined from outliers and suspicious volumes.
- Safe Node Operators — impartial, security-reviewed, and Sybil-resistant oracle nodes run by main blockchain DevOps groups, information suppliers, and conventional enterprises guarantee reliability, even throughout excessive gasoline costs and excessive community congestion.
- Decentralized Community — decentralized on the information supply, oracle node, and oracle community ranges, Chainlink affords robust protections in opposition to downtime and tampering by both the information supplier or the oracle community.
- Blockchain Agnostic – Chainlink’s oracle networks function on the native velocity of the chain the place information is being delivered with out cross-dependencies on every other blockchain community. Chainlink Worth Feeds on Solana haven’t any dependencies on different chains, permitting for high-frequency updates at decrease prices.