Aave DAO Approves Chainlink Proof Of Reserves Integration To Strengthen Network Security
Key Points:
- Decentralized loan procedure Aave, a decentralized finance (DeFi) twist on the centralized exchanges trying to restore client faith in the wake of FTX, will use a “proof of reserve” approach to safeguard bridged assets on Avalanche.
- Bored Ghost Developing claims that its PoR smart contracts will add another layer of protection to Aave’s Avalanche implementation and can also lessen attacks on network assets that are bridged.
- Aave will employ ChainLink PoR’s aggregator smart contract to secure tokens on both the target network and the original Ethereum network (Avalanche).
Decentralized loan procedure Aave, a decentralized finance (DeFi) twist on the centralized exchanges trying to restore client faith in the wake of FTX, will use a “proof of reserve” approach to safeguard bridged assets on Avalanche.
The Proof of Reserve smart contract from blockchain oracle Chainlink received over 99% support from the decentralized autonomous organization (DAO) that powers Aave, the well-known DeFi protocol on Ethereum. It will cover Aave versions (v)2 and (v3) on the Avalanche blockchain particularly.
DeFi uses bridged assets to transfer value between blockchains that would otherwise not be able to connect. A copy of the asset is then created on the target network after it is locked in a smart contract on its original chain. Among other tokens, Aave v3 on Avalanche has bridged versions of DAI, USDT, and USDC.
But because of the numerous security flaws this system produces, token bridges have frequently been used by hackers. This year, breaches on the token bridges of Web3 game Axie Infinity’s Ronin network and cross-chain protocol Nomad resulted in exploits totaling more than $800 million.
The proposal’s creator, Bored Ghost Developing, claims that its PoR smart contracts will add another layer of protection to Aave’s Avalanche implementation and can also lessen attacks on network assets that are bridged.
“The focus is more on automatically detecting and acting whenever any symptom of security issues on a bridge appears,” said Ernesto Boado, the former chief technology officer at Aave and co-founder at Bored Ghost Developing, which wrote the proposal. “We think that obviously, transparency goes first, in this case, our development goes a step further.”
Aave will employ ChainLink PoR’s aggregator smart contract
According to the plan, Aave will employ ChainLink PoR’s aggregator smart contract to secure tokens on both the target network and the original Ethereum network (Avalanche).
According to Max Melcher, head of go-to-market for proof of reserves at Chainlink Labs, decentralized solutions may now reliably report reserve levels without relying on a single party thanks to proof of reserves.
“Leveraging Chainlink Proof of Reserve, Aave can verify that bridged assets accepted on the platform are fully collateralized before allowing users to borrow against them,” said Melcher.
Since FTX collapsed, proof of reserves has been in the news because the sector calls for centralized exchanges to be more transparent (CEX). Popular exchange Crypto.com’s reserve ratios from earlier this month demonstrate that investors’ assets are securely guaranteed. The auditor for Binance, Mazars, severed connections with the exchange last week, casting doubt on the exchange’s reserves—or lack thereof.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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Aave DAO Approves Chainlink Proof Of Reserves Integration To Strengthen Network Security
Key Points:
- Decentralized loan procedure Aave, a decentralized finance (DeFi) twist on the centralized exchanges trying to restore client faith in the wake of FTX, will use a “proof of reserve” approach to safeguard bridged assets on Avalanche.
- Bored Ghost Developing claims that its PoR smart contracts will add another layer of protection to Aave’s Avalanche implementation and can also lessen attacks on network assets that are bridged.
- Aave will employ ChainLink PoR’s aggregator smart contract to secure tokens on both the target network and the original Ethereum network (Avalanche).
Decentralized loan procedure Aave, a decentralized finance (DeFi) twist on the centralized exchanges trying to restore client faith in the wake of FTX, will use a “proof of reserve” approach to safeguard bridged assets on Avalanche.
The Proof of Reserve smart contract from blockchain oracle Chainlink received over 99% support from the decentralized autonomous organization (DAO) that powers Aave, the well-known DeFi protocol on Ethereum. It will cover Aave versions (v)2 and (v3) on the Avalanche blockchain particularly.
DeFi uses bridged assets to transfer value between blockchains that would otherwise not be able to connect. A copy of the asset is then created on the target network after it is locked in a smart contract on its original chain. Among other tokens, Aave v3 on Avalanche has bridged versions of DAI, USDT, and USDC.
But because of the numerous security flaws this system produces, token bridges have frequently been used by hackers. This year, breaches on the token bridges of Web3 game Axie Infinity’s Ronin network and cross-chain protocol Nomad resulted in exploits totaling more than $800 million.
The proposal’s creator, Bored Ghost Developing, claims that its PoR smart contracts will add another layer of protection to Aave’s Avalanche implementation and can also lessen attacks on network assets that are bridged.
“The focus is more on automatically detecting and acting whenever any symptom of security issues on a bridge appears,” said Ernesto Boado, the former chief technology officer at Aave and co-founder at Bored Ghost Developing, which wrote the proposal. “We think that obviously, transparency goes first, in this case, our development goes a step further.”
Aave will employ ChainLink PoR’s aggregator smart contract
According to the plan, Aave will employ ChainLink PoR’s aggregator smart contract to secure tokens on both the target network and the original Ethereum network (Avalanche).
According to Max Melcher, head of go-to-market for proof of reserves at Chainlink Labs, decentralized solutions may now reliably report reserve levels without relying on a single party thanks to proof of reserves.
“Leveraging Chainlink Proof of Reserve, Aave can verify that bridged assets accepted on the platform are fully collateralized before allowing users to borrow against them,” said Melcher.
Since FTX collapsed, proof of reserves has been in the news because the sector calls for centralized exchanges to be more transparent (CEX). Popular exchange Crypto.com’s reserve ratios from earlier this month demonstrate that investors’ assets are securely guaranteed. The auditor for Binance, Mazars, severed connections with the exchange last week, casting doubt on the exchange’s reserves—or lack thereof.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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