BGD Labs Announcing Integration Of Chainlink Proof Of Reserve Onto Avalanche

Key Points:

• Chainlink’s Proof of Reserve capability is now accessible on Aave’s Avalanche blockchain version.
• The Chainlink PoR integration will enable users to confirm that Aave markets are collateralized and lower the risks associated with employing wrapped tokens.
• Aave has enabled over $2 trillion in transaction volumes in 2022 alone because of Chainlink oracles.

In order to increase lending market transparency and on-chain verification, Chainlink’s Proof of Reserve feature is now accessible on the Aave lending platform running on the Avalanche blockchain.

The integration will enable transparency for tracking the financial health of liquidity pools on the Avalanche-based Aave platform that contains wrapped tokens like AAVE.e, DAI.e, LINK.e, WBTC.e, and WETH.e were driven by BGD Labs, a development company specializing in the Aave ecosystem.

For many Ethereum-based coins that can later be utilized on Aave, Avalanche relies on bridging. The bridging procedure involves wrapping, which is the locking up of a certain number of tokens and issuing an equivalent number of tokens on Avalanche.

The security issues connected with wrapped tokens are one of the potential difficulties. By providing automated on-chain data feeds, the PoR integration will enable users to confirm that Aave markets are collateralized and lower the risks associated with employing wrapped tokens.

As one of the biggest decentralized liquidity protocols in the world, Aave has enabled over $2 trillion in transaction volumes in 2022 alone because of Chainlink oracles.

Chainlink PoR makes use of the industry’s largest decentralized network of Sybil-resistant and security-reviewed node operators to verify and keep track of on-chain and off-chain assets, including wrapped tokens. The Aave Protocol’s inclusion of Chainlink by BGD Labs helps guarantee that bridged assets are correctly collateralized.

We’re pleased to support the Aave Protocol and community by integrating Chainlink Proof of Reserve. This integration helps prevent undercollateralized bridged assets on Aave markets on Avalanche, helping to reduce the technical and economic risks associated with liquidity pools involving bridged assets.

said Ernesto Boado, Co-Founder, BGD Labs.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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