Parrot is Integrating Chainlink Price Feeds to Accurately Price Collateral and Liquidate Loans
We’re excited to announce that Parrot, a DeFi platform live on Solana mainnet designed to unlock LP liquidity through lending, is integrating Chainlink Price Feeds. By integrating the industry-leading decentralized oracle network, we have access to tamper-proof price feeds used to reliably calculate collateral requirements and liquidate loans on our lending protocol.
We chose to integrate Chainlink Price Feeds because they provide time-tested price feed data in a decentralized manner, helping us maintain the crucial security features needed for blockchain-based applications. Chainlink Price Feeds are battle-hardened and used by some of the largest DeFi protocols across the blockchain industry to help secure tens of billions of dollars in total value locked (TVL). Crucially, Chainlink Price Feeds have been resilient in the face of unexpected events such as flash crashes, exchange downtime, extreme market volatility, and even flash loan attacks — helping assure our users that the price oracles securing our lending function cannot be tampered with.
Parrot is a top-10 Solana project by TVL that helps users access locked liquidity in the form of LP tokens by allowing users to take out loans against their LP positions. Users are able to borrow Parrot’s native stablecoin PAI, SOL, Solana-based tokens, and cross-chain assets by locking up specified LP tokens as collateral. Ultimately, the goal is to provide more functionality to LP tokens, which traditionally have limited use cases other than yield farming.
In order to help secure our lending platform and liquidate loans based on accurate and high-quality price data, we needed a decentralized oracle network that could provide decentralized data feeds that do not come from any single source. Chainlink Price Feeds fulfill this function perfectly, fielding multiple layers of data aggregation at the data source, oracle node, and oracle network level. With real-time updates from Chainlink Price Feeds, Parrot can reliably liquidate loans with high assurances that the price data received is accurate, protecting user funds through fair and tamper-proof processes.
In our search for decentralized price data, Chainlink stood out as the best option because Chainlink Price Feeds have 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 volume, and cleaned from outliers and suspicious volumes. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API/exchange downtime, flash crash outliers, and data manipulation attacks.
- High Update Frequency — Chainlink Price Feeds can perform frequent price updates at minimal costs, resulting in precise price data that consistently reflects current market conditions.
- Robust Infrastructure — Chainlink Price Feeds utilize decentralized networks of professional node operators run by leading blockchain DevOps teams and traditional enterprises with a strong track record of uptime during market volatility.
- Transparent Monitoring — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of price feeds.
“Chainlink is the industry standard for providing smart contracts with access to off-chain data feeds. By integrating Chainlink Price Feeds, we are implementing critical infrastructure that will help us protect user funds and trigger outcomes such as loan liquidations based only on high-quality and decentralized price data.” — the Parrot Team.
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.
Parrot is a liquidity network for borrowing and lending, offering a suite of DeFi products:
- The stablecoin PAI
- Synthetic BTC (pBTC)
- The Parrot stake pool token (prtSOL)
- Synthetic SOL (pSOL)
- +EARN vaults, where the deposited collateral is used to generate yield for borrowers