Saber Integrates Chainlink Oracles as Recommended Solution To Support DeFi Applications Using Saber LP Tokens
Saber, the leading Automated Market Maker for trading stable pairs on Solana, is excited to announce its support for the deployment of a wide range of Chainlink Price Feeds on Solana. Chainlink Price Feeds are the industry standard for secure and reliable price oracles, already helping secure tens of billions of dollars across top DeFi projects.
To start, the following Chainlink Price Feeds will be deployed on Solana: USDC/USDT, mSOL/SOL, UST/USDC, stSOL/SOL, wFTT/FTT, wSRM/SRM, and SBR/USD. Saber recommends that any project integrating support for Saber LP tokens or SBR uses Chainlink Price Feeds as their oracle solution for the most up-to-date price data for these pools.
These Chainlink-powered decentralized price oracles will enable developers to accurately and securely generate valuations on Saber LP tokens and the Saber native token (SBR) when performing key on-chain functions such as issuing loans based on Saber LP token collateral. Ultimately, this will accelerate the adoption of Saber LP tokens throughout the many new and existing DeFi protocols being built on Solana. Chainlink Price Feeds will be key in increasing the utility of Saber because it enables liquidity providers to earn yield while still having active liquidity for their staked assets.
Saber is one of the top DeFi exchanges by total value locked (TVL) and volume on the Solana blockchain. AMM protocols like Saber act as liquidity gateways for users and other DeFi protocols such as lending markets, yield aggregators, asset management solutions, and more. They also serve as a way for passive holders to earn additional yield on their assets by becoming liquidity providers and earning transaction fees.
However, Saber seeks to give LPs additional utility on their assets beyond earning passive income. For this reason, Saber issues LP tokens to liquidity providers, which they can use throughout the Solana DeFi ecosystem for activities such as yield farming or as collateral for a loan. However, it’s critical that DeFi protocols integrating support for Saber LP tokens have robust oracle infrastructure in place in order to avoid faulty liquidations of user funds, mispriced rewards systems, and various other mishappenings.
With the upcoming launch of Chainlink Price Feeds, developers across the Solana ecosystem will have access to a pre-built and time-tested decentralized oracle solution for Saber stable pairs. Saber recommends Chainlink because of its historical reliability and optimization around key 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 running natively on Solana can perform high-frequency price updates at minimal costs, resulting in precise price data that consistently reflects current market conditions.
- Decentralized 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.
“Secure and reliable price data that are sourced in a decentralized manner from premium off-chain data providers are absolutely critical for many DeFi use cases. Saber’s support for Chainlink Price Feeds sets Saber and the wider Solana ecosystem up for success by establishing best-practice security for oracle infrastructure when pricing Saber LP tokens and SBR throughout the many emerging projects within the Solana DeFi ecosystem. Crucially, development teams won’t need to build any oracle infrastructure from scratch or worry about inexperienced teams or unproven oracle technologies.” — Ian Macalinao, Co-founder of Saber.
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 Saber Labs
Saber is the leading cross-chain AMM for pegged assets on Solana, such as stablecoins and wrapped assets. As Solana’s core cross-chain liquidity network, Saber helps facilitate the transfer of assets between Solana and other blockchains. Users deposit crypto into a Saber liquidity pool to earn passive yield from transaction fees, token-based incentives, and eventually automated DeFi strategies. Learn more about Saber by visiting saber.so and joining the Saber community on discord.