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LIQ Protocol Liquidation Engine’s Security to Receive a Boost

source-logo  altcoinbuzz.io 21 October 2021 20:55, UTC

Chainlink reliable Price Feeds is yet again in the limelight.

Decentralized on-chain liquidation protocol LIQ Protocol will be integrating Chainlink Price Feeds. The integration will help improve:

  • reliability
  • precision and
  • security of the on-chain liquidation protocol.

Apart from helping to improve security on LIQ, the integration will also help improve DeFi protocols on the Solana ecosystem. This is because LIQ Protocol is the go-to liquidation protocol of most DeFi projects on the Solana ecosystem.

More on The Partnership

According to a report, integrating Chainlink Price Feeds is a step in the right direction for the liquidation protocol. The integration will provide LIQ with top-notch security for its liquidation protocol. They will also be able to provide references for a wide range of assets at high frequency. They do this with zero loss in uptime and top-notch tamper resistance.

Solana-based DeFi protocols (Margin or Borrowing) will get timely updates and be in sync with global markets. Cross-checking Chainlink Price feeds on all LIQ positions will improve reliability and security. This will ensure positions have the necessary collateral before on-chain approval takes place.

Upgrading to Chainlink will first involve all existing Chainlink price feeds on Solana. These price feeds will be closely followed by RAY/USD, LIQ/USD, and FTT/USD feeds.

Why Chainlink

According to LIQ Protocol, Chainlink has proven itself. It’s the superior oracle platform when compared to other available alternatives. The liquidation protocol appreciates Chainlink’s seamless infrastructure and reliable price feeds. Also adding that it currently helps to secure tens of billions of dollars worth of crypto assets in the DeFi space.

Chainlink has also shown great proficiency in maintaining security despite unexpected events like flash crashes, exchange downtime, flash loan attacks, etc.

Other important reasons why Chainlink is the chosen oracle platform include:

  • High-Quality Data from top-notch data aggregators, etc
  • Transparency
  • High update frequency
  • Top-notch and reliable infrastructure
  • Also, its multi-layered aggregation model and reliable node operators make it an excellent oracle solution for the Solana ecosystem.

Speaking on the integration, CEO, and Co-founder of LIQ Protocol, Matt disclosed that the entire Solana ecosystem was thrilled by the integration. Adding that iterating Chainlink Price Feeds will give LIQ “[…] access to high-quality, tamper-proof pricing data to help strengthen our liquidations engine.”

Matt also pointed out that Chainlink’s reputation is perfectly in sync with what the Solana ecosystem is looking to achieve. Partnering with Chainlink, therefore, is setting up the Solana ecosystem “[…] for success by establishing a strong foundation of secure and reliable infrastructure.”

More on Chainlink and LIQ Protocol

Chainlink can safely be referred to as the industry standard for price feeds and oracle services. It helps smart contracts securely connect with external API. Therefore, giving them the opportunity to access secure off-chain computations.

LIQ Protocol, on the other hand, is a decentralized on-chain liquidation engine protocol. It is also specially designed for Serum markets and Solana-based lending platforms.

LINK price

At the time of writing, LINK was trading at $28.60 with a market cap of $13,131,597,484 and a 24-hour trading volume of $1,354,584,513. The token price is also up by 5.8% in the last 24 hours.

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