Chainlink plans to increase its support for decentralized finance (DeFi) projects. The network has announced it will offer a live price feed on the Solana blockchain for different cryptocurrencies, including Bitcoin, Ethereum, and USD Coin (USDC). Other cryptocurrencies could also be adopted in the future.
Chainlink is a blockchain oracle platform that has been at the center of multiple blockchains that want to increase their exposure to DeFi. Price feeds have been the main selling point for Chainlink because it allows developers to expand their DeFi activity.
Chainlink price feeds launch on Solana
Chainlink revealed that its price feeds would be launched on the Solana blockchain in a recent announcement. The information provided by these price feeds will be used by DeFi developers on the Solana blockchain for a wide range of financial services.
In the announcement, Solana said that the initial launch will contain seven price feeds available to Solana developers. These price feeds will include BTC/USD, ETH/USD, and USDC/USD. As the integration advances to other stages, more price feeds will be available.
Several projects have already shown their commitment to using the tools provided by Chainlink. Besides the DeFi developers on Solana that will now have access to these new tools, Chainlink tools have also been used by other protocols such as the Apricot Finance lending protocol and yield farming aggregators Francium and Tulip.
The co-founder of Solana, Anatoly Yakovenko, commented on the development, saying that the integration would offer immense benefits to decentralized application (DApp) developers on the Solana network. He added that the launch of Chainlink on Solana would allow decentralized finance developers to access some of the most used oracles within the blockchain.
An oracle is a platform that will bridge applications based on blockchain technology. The bridges will be extended to external systems and provide data generated from the real world. Chainalysis is another platform that also offers oracle systems. The analytics platform offers oracles for smart contracts to detect sanctioned wallet addresses.
Price oracles have become quite popular in the DeFi sector. These tools can determine the correct rates to be used in lending and collateral between different cryptocurrencies.
Price oracles have been under threat in the past. Terra Classic, a DeFi protocol, recently suffered an exploit after its price oracle started reporting false data for Luna Classic (LUNC). The exploitation allowed the attacker to access $2 million worth of funds after depositing a small amount of collateral into the network.
The Chainlink oracle was linked with some of the compromised DApps. However, the error is believed to be from the protocol’s side because it allowed the attacker to access the massive amount of funds on the network.
The co-founder of the oracle platform, Sergey Nazarov, expressed enthusiasm following the new integration. The executive said that the move was notable forward in the right direction in the DeFi sector. The team hopes to work within the Solana network because of the Chainlink deep oracle network.
Vulnerabilities with the Solana network
Solana is one of the largest networks in the DeFi sector. The network is praised as one of the fastest blockchains in the market, but it has recently faced massive issues that have users questioning its reliability.
Recently, the Solana network suffered another downtime when the network was shut down globally over its issues. This was the second time that the Solana network had suffered a glitch within one month. Solana’s woes have worsened since the beginning of the year, with several downtimes.
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