Chainlink will provide live price data on Solana for Bitcoin, Ethereum, and USDC, with more cryptocurrencies to come.
Chainlink – a blockchain oracle platform – recently announced that its price feed technology has been launched on the Solana network. This information will help Solana defi developers use live price information for various financial services.
The oracle platform has announced that seven price feeds will be made available for Solana developers. These include BTC/USD, ETH/USD, and USDC/USD. More price feeds will be made available at later stages of the integration.
Multiple projects have already committed to using Chainlink’s tools, including lending protocol Apricot Finance, and yield farming aggregators Francium and Tulip.
Solana co-founder Anatoly Yakovenko believes the integration will be a boon to Solana’s dapp developers: “Chainlink’s launch on Solana will give defi developers access to the most widely used oracles in blockchain,” he said.
An “oracle” is an entity that bridges blockchain-based applications with external systems, providing data from the real world. Chainalysis, for example, provides an oracle for smart contracts to identify sanctioned blockchain addresses.
Price oracles are helpful defi tools, as they help determine appropriate lending and collateral rates between different cryptocurrencies.
A defi protocol on Terra Classic was recently exploited because its price oracle was reporting incorrect data for LUNC. This allowed the exploiter to seize $2 million in funds despite posting minimal collateral into the system.
Chainlink’s oracle was associated with some of the exploited dapps, but the error was believed to be a protocol side mistake.
The oracle platform’s co-founder Sergey Nazarov showed excitement about the integration, calling it a “major leap forward,” for the defi industry. His team is anticipating its role within the Solana ecosystem, taking note of Chainlink’s deep oracle network.
Andrew is content writer with a passion for Bitcoin. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017. Ever since, he’s believed in the network’s power to replace the current global monetary system, and provide financial freedom to billions worldwide.
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