LIQ Protocol is Upgrading to Chainlink Price Feeds on Solana to Enhance the Security of the Liquidation Engine

LIQ Protocol is a leading on-chain liquidation protocol on the Solana network, is integrating Chainlink Price Feeds to upgrade the security, reliability, and precision of the oracle mechanism powering its liquidations engine.

Ultimately, this integration will enhance the robustness of many DeFi protocols across the Solana ecosystem, as LIQ Protocol is heavily relied on to perform liquidations on their behalf.

By integrating the industry-leading decentralized oracle network, the liquidation mechanism will be able to reference high-quality price data that updates at high frequency and represents wide market coverage, all without sacrificing uptime and tamper resistance. The result is a liquidation mechanism for Solana-based margin/borrowing projects that operates on time and remains in sync with real-time global markets. Every position marketed for liquidation by LIQ Protocol will be checked against Chainlink Price Feeds to verify it is indeed undercollateralized before being approved on-chain.

Their initial integration will involve all existing Chainlink Price Feeds on the Solana devnet, along with custom RAY/USD, FTT/USD, and LIQ/USD Price Feeds to follow. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.

Some of the specific optimizations that make Chainlink Price Feeds a superior solution over other alternatives 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 of outliers and suspicious volumes.
• High Update Frequency — Chainlink Price Feeds running natively on Solana can perform frequent price updates at minimal costs without dependencies on other blockchains, resulting in precise price data that consistently reflects current market conditions in a cost-efficient manner.
• Robust 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 and centralized infrastructure outages.
• 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.

With its multi-layered data aggregation model, secure and reliable node operators, decentralized network, and robust reputation framework, Chainlink Price Feeds is a perfect oracle solution to help us secure the Solana DeFi ecosystem. Integrating Chainlink will help ensure that our users receive accurate liquidations in a timely and highly secure manner.

“We’re excited to integrate the industry-standard price oracle solution in the form of Chainlink Price Feeds, giving us access to high-quality, tamper-proof pricing data to help strengthen our liquidations engine,” said Co-founder and CEO of LIQ Protocol. “The reputation of Chainlink and the quality of its products line up perfectly with what we’re working to bring to the Solana DeFi ecosystem, setting it up for success by establishing a strong foundation of secure and reliable infrastructure.”

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 LIQ Protocol

LIQ Protocol is a decentralized on-chain liquidation engine protocol built for Serum markets and lending platforms on the Solana network. The protocol plays a key role in keeping a healthy Solana and Serum ecosystem. By managing liquidations and providing capital across several different derivatives and lending platforms, the overall usability and health of the platforms are substantially increased, which also helps further advance the ecosystem. The liquidator’s profits are used to buy back LIQ, and redistributed to liquidity providers.

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