Marinade is Sponsoring a mSOL/USD Chainlink Price Feed to Expand mSOL’s Utility in DeFi

Marinade.finance is pleased to announce that it will be sponsoring a new mSOL/USD Chainlink Price Feed on the Solana blockchain.

DeFi projects in the Solana ecosystem will be able to use this Chainlink-powered decentralized oracle to access high-quality, tamper-proof price data directly on-chain regarding the USD price of mSOL — Marinade’s yield-generating, staked version of SOL.

As a result, developers will be able to seamlessly and securely add support for mSOL within their DeFi applications, allowing the Solana community to earn a yield on SOL while interacting with various DeFi products and services. Ultimately, this will enable the Solana ecosystem and partner DeFi protocols to grow their TVL by supporting mSOL as a popular collateral asset, given its enhanced utility and yields. In fact, Marinade has already unlocked over $1.6B in liquidity for SOL stakers at the time of writing, making it one of the best ways to put your SOL to work on Solana.

We chose Chainlink Price Feeds because they are the most time-tested price oracle solution available in the blockchain industry, already helping secure tens of billions of dollars for leading DeFi applications. Moreover, Chainlink Price Feeds have a verifiable history of providing globally accurate and up-to-date price data during extreme market volatility and unexpected network outages, protecting users against under-collateralization and various other black swan events.

Marinade.finance is a non-custodial, liquid staking protocol built on Solana. Marinade makes it easy for users to stake SOL on Solana by managing everything from automatic rebalancing to selecting validators. Users can stake their SOL tokens on Marinade to receive mSOL, a token that accrues and compounds staking rewards.

One of the most important features of Marinade is that it is non-custodial, so users always retain full control over their assets. Also, users can unstake their mSOL tokens immediately without any waiting period, eliminating Solana’s traditional 3-day warming up and cooling down period when staking.

Marinade’s ultimate goal is to help integrate mSOL everywhere where SOL is currently being used because it empowers Solana users to earn yield while still having liquidity to interact with DeFi protocols. While Marinade does not directly use oracles in our liquid staking solution, DeFi protocols that integrate mSOL do need oracles for pricing mSOL before executing key on-chain functions. For example, a lending protocol would need an oracle to issue a loan or liquidate a position if mSOL was used as collateral.

After thoroughly exploring various oracle solutions, we found Chainlink Price Feeds to have the ideal blend of premium data quality, robust oracle infrastructure, and high-frequency updates. It’s why we recommend that DeFi projects integrating mSOL use Chainlink Price. Some of the benefits include:

• High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and suspicious volumes. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API/exchange downtime, flash crash outliers, and data manipulation attacks.
• High Update Frequency — Chainlink Price Feeds running natively on Solana can perform high-frequency price updates at minimal costs, resulting in precise price data that consistently reflects current market conditions.
• Decentralized Infrastructure — Chainlink Price Feeds utilize decentralized networks of professional node operators run by leading blockchain DevOps teams and traditional enterprises with a strong track record of uptime during market volatility.
• Transparent Monitoring — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of price feeds.

“Chainlink Price Feeds already have an extensive history of helping secure some of the DeFi industry’s most widely used and high-value applications, making them a clear choice to help accelerate the adoption of mSOL throughout the Solana ecosystem,” stated Marco Broeken, BD/Infrastructure Lead at Marinade. “We recommend that all Solana developers add support for mSOL in their dApp to utilize Chainlink, as it will provide you with an ideal blend of high-quality data and robust infrastructure known for high uptime and tamper-resistance.”

About Chainlink

Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.

About Marinade

Marinade is the first and the biggest liquid staking provider on Solana. It is a non-custodial solution with an open delegation strategy, delegating the user stakes to over 400 validators outside of the top 20 security group. By doing this, Marinade directly helps to decentralize Solana by increasing Nakamoto coefficient. Throughout the last three months, its liquid staking derivative mSOL was integrated across most of the Solana ecosystem, manifesting the vision of capital efficiency of liquid staking.

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