Chainlink plans to increase its support for decentralized finance (DeFi) projects. The network has announced that it will offer a live price feed on the Solana blockchain for different cryptocurrencies, including Bitcoin, Ethereum, and USD Coin (USDC). Other cryptocurrencies may also be adopted in the future.
Chainlink is a blockchain oracle platform that has been the focus of several blockchains looking to increase their exposure to DeFi. Price feeds have been Chainlink’s main selling point as they allow developers to expand their DeFi business.
Launch of Chainlink Price Feeds 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 the initial launch will contain seven prize streams available to Solana developers. These price streams will include BTC/USD, ETH/USD, and USDC/USD. As the integration progresses to further stages, more price feeds will become available.
Several projects have already shown their commitment to using the tools provided by Chainlink. Besides DeFi developers on Solana who will now have access to these new tools, Chainlink tools have also been used by other protocols such as lending protocol Apricot Finance and yield farming aggregators Francium and Tulip.
Solana co-founder Anatoly Yakovenko commented on the development, saying the integration would provide immense benefits to developers of decentralized applications (DApps) on the Solana network. He added that launching Chainlink on Solana would give decentralized finance developers access to some of the most widely used blockchain oracles.
An oracle is a platform that will link 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 very popular in the DeFi sector. These tools can determine the correct rates to use for loans and collateral between different cryptocurrencies.
Price oracles have been threatened in the past. Terra Classic, a DeFi protocol, recently suffered an exploit after its price oracle started reporting fake data for Luna Classic (LUC). The exploit gave the attacker access to $2 million in funds after posting a small amount of collateral on the network.
The Chainlink Oracle was linked to some of the compromised DApps. However, the error is believed to be from the protocol side as it allowed the attacker to access the huge amount of funds on the network.
Oracle platform co-founder Sergey Nazarov expressed his excitement over the new integration. The executive said the move was noticeable in the right direction in the DeFi sector. The team hopes to work within the Solana network through the Chainlink deep oracle network.
Vulnerabilities with the Solana network
Solana is one of the largest networks in the DeFi sector. The network is hailed as one of the fastest blockchains on the market, but it has recently faced huge issues that have users questioning its reliability.
Recently, the Solana network suffered another downtime when the network was shut down globally due to its issues. It was the second time the Solana network suffered a glitch in a month. Solana’s woes have worsened since the start of the year, with several downtimes.
To learn more, see our Investing in Chainlink guide.