LIQ Protocol is a prominent on-chain liquidated convention. It is incorporating Chainlink Pricing Feeds on the Solana system to increase the safety, dependability, and accuracy of the oracle mechanism driving the liquidation engines. Since the LIQ Protocol is heavily dependent on Solana to complete liquidations on their account, this incorporation will improve the stability of numerous DeFi mechanisms on the network of Solana.
The LIQ Technology is an on-chain decentralized liquidation engine protocol designed for lending platforms and Serum markets. The protocol is essential for maintaining the Solana and Serum ecosystem’s vitality.
The liquidating mechanism can recall premium price data which refreshes at a specific rate and reflects vast market exposure by incorporating the industry-leading decentralized oracle system while maintaining availability and tampering resistance.
As a result, a mechanism of liquidation that is timely and in tune with global, real-time markets has been developed for the Solana-based margin/borrowing initiatives. Before even being accepted on-chain, each position sold for the purpose of liquidation by the LIQ Protocol would be reviewed against Chainlink Pricing Feeds to ensure it is actually undercollateralized.
All current Chainlink Pricing Feeds on the devnet of Solana will be integrated first, with custom LIQ/USD, FTT/USD, and, RAY/USD, Price Feeds to come. Chainlink was the most obvious choice in the oracle option since its architecture is easy to incorporate and has been used in operation for a long time. Chainlink already assists in the safety of top DeFi protocols that are liable billions of dollars value of smart contracts, ensuring rigorous quality and better accessibility even in the face of unforeseeable events like exchange outages, flash accidents, and flash loan-induced threat of manipulation of data.
The following are some of the particular enhancements that make the Chainlink Pricing Feeds a better method to other options:
Data of Excellent Quality – Chainlink Price Feeds gathers data from various specialized data aggregators, resulting in price information collected from dozens of trades, balanced by size, and cleaned of questionable volumes and outliers. The data gathering technique used by Chainlink produces more exact results.
Rapid Updating Frequency – Chainlink Pricing Feeds operating directly on Solana may change prices frequently and cheaply without relying on other blockchain systems, leading to exact price data which accurately represent the state of the market.
Stable & Reliable Infrastructure – It is built on a decentralized system of expert node administrators managed by top blockchain DevOps groups and conventional organizations with a solid reputation of reliability throughout centralized infrastructure disruptions and market turmoil.
Transparent Tracking – It provides a sophisticated reputation system and a collection of surveillance tools on-chain that enable customers to manage their assets independently.
Chainlink Price Feeds is the ideal oracle option to help us safeguard the Solana DeFi ecosystem, thanks to its data-gathering methodology which is multi-layer in nature, secure and dependable node administrators, a network that is decentralized, and strong reputational structure.