Tulip, a yield aggregation and leveraged yield agriculture agreement, today announced that it is integrating Chainlink Price Feeds.Through integration Popular oracle network, Tulip will obtain high-quality, tamper-proof financial market data sources to ensure the security of leveraged income farm positions. Therefore, lenders and borrowers will be more certain to ensure that risk positions are properly liquidated.
“We chose Chainlink as our preferred oracle solution because it does not compromise on security and reliability, and is verifiable during extreme market volatility, exchange/API downtime, and data manipulation attacks (such as through lightning loans). The history of accuracy and resilience proves thisIn addition, Chainlink Price Feeds on Solana can release oracle updates on the chain with sub-second frequency and complete market coverage to further ensure that price data can reflect real-time global market conditions. “
– Tulip Team
Use Chainlink price information to ensure liquidation
As a revenue aggregation platform supported by Solana, Tulip provides advanced automated composite vault strategies. By leveraging Solana’s low-cost, high-speed blockchain network, the proceeds can often be reinvested in the vault strategy.
Then, Stakers can benefit from higher returns without the need for active management. Tulip also provides users with leveraged income farming to increase their income when depositing in a bilateral liquidity pool.
The Leveraged Income Agriculture Platform aims to connect lenders (obtaining an automatic compound variable deposit interest rate yield) with borrowers who want to increase the profitability of agricultural profits by paying to borrow additional assets and then depositing them on the farm.
When a leveraged income farm position is opened, users use their collateral to provide and borrow, and deposit the two assets into the liquidity pool to obtain liquid mining rewards and transaction fees.
Opening a position generates a mortgage loan, which must maintain a pre-defined loan-to-value (LTV) ratio. If the value of the collateral falls below an unsafe level, the collateral will be liquidated and sold to repay the lender.
To determine when high-yield agricultural positions should be liquidated, Tulip needs price data to determine the value of collateral and borrowed assets, which are used to calculate the LTV ratio.
However, due to the blockchain oracle problem, smart contracts cannot locally access off-chain data, such as aggregated market prices. Smart contracts require additional infrastructure (called oracles) to obtain external data and transmit it back to the chain.
Because clearing plays such a critical role in managing platform risk exposure, Tulip’s oracle solution also needs to aggregate from many oracle nodes and sources to ensure accuracy, uptime and resistance to manipulation.
After studying different oracle solutions, the Tulip team determined that Chainlink can provide the perfect combination of high-quality data quality, strong oracle security, and fast update frequency to help ensure that its clearing mechanism follows the market in real time.
The reasons for choosing Chainlink Price Feeds include:
- High-quality data — Data comes from many high-quality data aggregators, providing price data aggregated from hundreds of exchanges, weighted by transaction volume, and refined from outliers and suspicious transaction volumes.
- Secure Node Operator — Independent, security-reviewed and anti-sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises can ensure reliability, even under conditions of high oil prices and extreme network congestion.
- Decentralized network — Distributed at the data source, oracle node and oracle network level, Chainlink provides powerful protection to prevent downtime and tampering of the data provider or the oracle network.
- Blockchain Agnostic – Chainlink’s oracle network runs at the native speed of the chain, where data is transmitted without cross-dependence with any other blockchain network. The Chainlink price feed on Solana does not depend on other chains, allowing high-frequency updates at a lower cost.