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Tranquil Finance Upgrades to Chainlink Price Feeds to Help Secure Its Lending and Borrowing Protocol

We are excited to announce the integration of Chainlink Price Feeds as Tranquil Finance’s exclusive price data solution on Harmony mainnet. The industry-leading Chainlink decentralized oracle network is now securing all of Tranquil Finance’s lending and borrowing markets to help ensure that user loans are accurately collateralized and underwater loans are liquidated according to globally accurate fair-market rates.Upgrading our oracles to use Chainlink allows the Tranquil protocol to access fresh and reliable asset prices, which is critical for promptly liquidating underwater positions.

Our initial integration involves the use of the following Chainlink Price Feeds: ONE/USD, WBTC/USD, ETH/USD, USDC/USD, USDT/USD. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value. Moreover, upgrading our oracles to Chainlink allows the Tranquil protocol to access fresh and reliable asset prices, which is critical for determining collateral ratios and promptly liquidating underwater positions.

Understanding the Importance of Oracles

An oracle is a service that makes real-world information available to smart contracts. Tranquil relies on price oracles to provide it with the price of all supported assets on the platform. These prices are used to calculate the collateral value and borrow limit for each user. If a user’s position exceeds the borrowing limit, then their position will be liquidated to protect the solvency of the protocol.

Our legacy oracle stack was based on Sushiswap TWAP oracles, which had two main drawbacks. First, the oracle returned an averaged price over 10 minutes, which lagged the actual price in extremely volatile market conditions, resulting in stale, inaccurate data. Secondly, the security of the oracle depended on the liquidity in Sushi...

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