Apricot Finance Integrates Chainlink Price Feeds to Help Support Secure Lending and Borrowing
We’re excited to announce that with the recent launch of Chainlink Price Feeds on Solana mainnet, Apricot Finance is using the industry-leading decentralized oracle network to access lightning-fast and secure price data feeds. Chainlink Price Feeds are used on the backend to help calculate collateralization ratios for users — helping ensure accurate liquidations for borrowers and helping protect lenders in all market conditions.
We chose Chainlink because it is the industry standard decentralized oracle network and already helps secure tens of billions of dollars in value for leading DeFi protocols across top blockchains and layer-2s. Chainlink Price Feeds have a proven history as reliable, accurate, and decentralized infrastructure that eliminates single points of failure.
How Chainlink Price Feeds Support Secure Lending
Apricot Finance is a Solana-based DeFi protocol unlocking decentralized lending and borrowing for a wide range of users. Because of a lack of credit history or user verification, Web3 lending protocols like Apricot Finance rely on overcollateralized loans to help ensure that lenders stay solvent. In short, this means borrowers must lock up an excess of collateral to get a loan (e.g. lock $100 worth of Solana in collateral to borrow less than $100 in another token).
With this in mind, integrating Chainlink Price Feeds to support the calculation of borrowers’ collateral rates serves two functions:
- Protecting Lender Solvency — High-quality price data helps ensure that lenders are protected against the risk of under collateralization, as the protocol uses the price data to help accurately liquidate borrowers before they lose lenders’ funds.
- Preventing Faulty Liquidations for Borrowers — Accurate decentralized price data helps ensure that borrowers are liquidated only when necessary, significantly decreasing the chance of faulty liquidations that result in immediate losses on the borrower side. For these reasons, accessing secure, reliable, and accurate price data was a top priority for Apricot Finance. Chainlink Price Feeds stood out as the best solution because the service has a multitude of superior features, such as:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by liquidity depth, and cleaned from outliers and suspicious volumes. Chainlink’s data aggregation model generates precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises with a strong track record for reliability, even during high gas prices and extreme network congestion.
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or the oracle network.
- Transparency — Robust, publicly available reputation frameworks and on-chain monitoring tools allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.
“Chainlink Price Feeds are the industry standard, used by Web3’s top lending protocols. With a proven history of accuracy and reliability, it was a no-brainer for our team to use Price Feeds to help secure collateral calculations once they were live on Solana.
Now, both lenders and borrowers can rest easy knowing the industry’s best price data is used to help calculate borrowers’ collateral and trigger liquidations.” — Team Apricot.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
About Apricot Finance
We also provide Apricot Assist, a configurable deleveraging tool aimed to help our borrowers manage risk during times of market volatility.