Tulip, a yield aggregation and leveraged yield farming protocol, introduced at the moment it’s integrating Chainlink Value Feeds. By integrating the popular oracle network, Tulip will acquire entry to a high-quality, tamper-proof supply of monetary market knowledge wanted to safe leveraged yield farm positions. Consequently, each lenders and debtors may have larger assurance that dangerous positions shall 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, change/API downtime, and knowledge manipulation assaults such by 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 value knowledge is reflective of real-time, international market circumstances.”
– The Tulip Team
Securing Liquidations With Chainlink Value Feeds
A yield aggregation platform powered by Solana, Tulip gives superior auto-compounding vault methods. By benefiting from Solana’s low-cost, high-speed blockchain community, yield might be incessantly reinvested into vault methods.
Stakers then profit from larger returns with out requiring energetic administration. Tulip additionally gives 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 enhance their yield farming earnings by paying to borrow extra belongings 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 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 under an unsafe degree, then the collateral is liquidated and bought to pay again the lenders.
In an effort to settle when yield farming positions ought to be liquidated, Tulip requires value knowledge to find out the worth of each the collateral and borrowed belongings, that are used to calculate the LTV ratio.
Nonetheless, because of the blockchain oracle drawback, good contracts can’t natively entry off-chain knowledge equivalent to aggregated market costs. Sensible contracts require an extra piece of infrastructure often known 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 trying into completely different oracle options, the Tulip crew decided that Chainlink may present the proper 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 embrace:
- Excessive-High quality Information — knowledge is sourced from quite a few premium knowledge aggregators, offering value knowledge that’s aggregated from lots 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, 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 gives robust 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.