Tulip Chain Link Integrates into Solana’s High Yield Farming Platform » CryptoNinjas – News Couple

Tulip Chain Link Integrates into Solana’s High Yield Farming Platform » CryptoNinjas

Tulip, a yield aggregation and leveraged yield farming protocol, announced today that it is integrating Chainlink price feeds. By integrating the popular Oracle Network, Tulip will gain access to the high-quality, tamper-resistant source of financial market data needed to secure positions of a highly leveraged yield farm. As a result, both lenders and borrowers will have greater assurance that risky positions will be properly liquidated.

“We chose Chainlink as our top solution due to its uncompromising approach to security and reliability, evidenced by its verifiable history of accuracy and resilience during extreme market volatility, exchange/API disruptions, and data manipulation attacks such as flash loans.. In addition, Chainlink price feeds on Solana can publish on-chain oracle updates at sub-second frequencies and full market coverage to ensure that price data reflects global market conditions in real time.”
– Team Tulip

Securing Liquidations with Chainlink’s Price Feed

Tulip, a payout aggregation platform powered by Solana, provides advanced strategies for automated inventory compositing. By leveraging Solana’s low-cost and high-speed blockchain network, the return can be reinvested repeatedly in vault strategies.

Then speculators benefit from higher returns without the need for active management. Tulip also offers highly leveraged yields to users to increase their returns when depositing into two-sided liquidity pools.

The Leveraged Yield Farming platform aims to connect lenders—who earn a return on a compound variable deposit rate automatically—with borrowers who want to increase their profits from yield farming by paying to borrow additional assets that are then deposited on a farm.

When a leveraged yield farm position is opened, the user supplies and borrows against their collateral, depositing both assets into the liquidity pool to earn liquidity mining incentives and trading fees.

Opening a position creates a secured loan that must maintain a predetermined loan-to-value ratio. If the value of the collateral falls below an unsafe level, the collateral will be liquidated and sold to repay the lenders.

In order to settle when productive farming centers should be liquidated, Tulip requests price data to determine the value of both the collateralized and borrowed assets, which are used to calculate the LTV ratio.

However, due to the blockchain oracle issue, smart contracts cannot natively access off-chain data such as aggregated market prices. Smart contracts require an additional piece of infrastructure known as an oracle to fetch and reconnect external data back on the chain.

Since filtering plays a key role in managing platform exposure, the Oracle Tulip solution also needs to be aggregated from multiple Oracle nodes and sources to ensure accuracy, uptime, and tamper resistance.

After looking at various oracle solutions, the Tulip team decided that Chainlink could provide the perfect combination of superior data quality, strong oracle security, and rapid update frequency to help ensure the filtering mechanism tracks the markets in real time.

Reasons for choosing Chainlink’s price feed include:

  • high quality data – The data is sourced from several premium data aggregators, providing price data that is aggregated from hundreds of exchanges, volume-weighted, and cleaned of outliers and suspicious volumes.
  • secure node operators Sybil-resistant, independent, security-reviewed oracle nodes run by leading blockchain DevOps teams, data providers, and traditional organizations ensure reliability, even during high gas prices and heavy network congestion.
  • decentralized network Decentralizing the data source, oracle node, and oracle network levels, Chainlink provides robust protection against downtime and tampering by the data provider or oracle network.
  • Blockchain Neutrality Chainlink’s oracle networks operate at the original chain speed where data is delivered without interdependence on any other blockchain network. Solana’s Chainlink price feeds are not dependent on other chains, allowing for high-frequency updates at lower costs.

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