Aave integrates Chainlink’s proof of reserves on Avalanche via BGD Labs

Earn money with the top Binance exchange

Aave integrates Chainlink’s proof of reserves on Avalanche via BGD Labs

Chainlink’s Proof of Reserve feature is now available on Aave lending platform on the Avalanche blockchain for on-chain verification and transparency of lending markets.

BGD Labs, a development firm focusing on the Aave ecosystem, led the integration that will enable transparency for monitoring the financial state of liquidity pools on Avalanche-based Aave platform that contain wrapped tokens like AAVE.e, DAI.e, LINK.e, WBTC.e, and WETH.e.

Avalanche relies on bridging for many Ethereum-based tokens which can then be used on Aave. The bridging process works by locking up an amount of tokens and issuing an equivalent number of tokens on Avalanche, a process called wrapping.

As one of the potential challenges with using wrapped tokens being the security risks associated with them, the Chainlink PoR integration will enable users to verify that Aave markets are collateralized and reduce the risks of using wrapped tokens by providing automated on-chain data feeds.

«Real-time access to the state of cross-chain liquidity pools increases the transparency and verifiability of the Aave market on Avalanche,» said Stani Kulechov, founder and CEO of Aave Companies. «Bringing additional visibility into reserve collateral is a necessary step forward and will help build more confidence and trust with end-users.»


Показать больше

Добавить комментарий

Кнопка «Наверх»
%d такие блоггеры, как: