LIQ Protocol integrates Chainlink Price Feeds to improve liquidation reliability and precision

By: Daniela Kirova
Daniela Kirova
Daniela was born in Bulgaria, grew up in Chicago, and then moved to Michigan to attend the University of… read more.
on Oct 19, 2021
  • Liquidation mechanism guarantees access to high-quality price data via leading oracle network
  • Every position that LIQ markets for liquidation is verified for under-collateralization before approval
  • Chainlink maintains high uptime and robust security even during flash loan attacks and crashes

LIQ Protocol, a major Solana-based (SOL/USD) on-chain liquidation protocol, has upgraded to Chainlink Price Feeds to improve the precision, security, and reliability of their liquidation engine’s oracle mechanism, Invezz learned from a press release.

As reliance on LIQ to perform DeFi protocol liquidation is very high, the upgrade is expected to enhance the robustness of many such protocols across Solana.

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LIQ’s liquidation mechanism will guarantee access to high-quality price data by integrating the industry-leading decentralized oracle network. This data is representative of the broad market without sacrificing security and uptime.

Users will have access to a liquidation mechanism for margin/borrowing projects based on Solana, which is always synced with global markets and operates on time.

Every position is verified before approval

Every position that LIQ markets for liquidation will be verified for under-collateralization before being approved on-chain by checking against Chainlink Price Feeds. The initial upgrade will involve all price feeds currently on the Solana devnet. Custom price feeds like RAY/USD, FTX Token (FTT/USD), and LIQ/USD will follow.

Matt, Co-founder and CEO of LIQ Protocol, explains why Chainlink was a natural choice:

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. 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.

Chainlink secures protocols with tens of billions in value

Chainlink maintains high uptime and robust security even in the event of flash loan attacks, flash crashes, and exchange downtime. It secures major DeFi protocols with tens of billions of dollars in smart contract value. It guarantees high update frequency, solid infrastructure, and transparent monitoring.

It can perform frequent price updates at minimal costs and uses decentralized networks of professional node operators. Last but not least, Chainlink allows users to verify the historical and real-time performance of Price Feeds independently by providing a stable set of on-chain monitoring tools and reputation framework. 

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