Chainlink’s Proof of Reserve feature is now available on the Aave lending platform on the Avalanche blockchain for on-chain lending market verification and transparency.
BGD Labs, an Aave ecosystem development firm, lead the integration that would allow transparency for monitoring the financial state of liquidity pools on the Avalanche-based Aave platform that comprise wrapped tokens like as AAVE.e, DAI.e, LINK.e, WBTC.e, and WETH.e.
Avalanche relies on bridging to allow several Ethereum-based coins to be utilized on Aave. The bridging procedure involves locking up a certain number of tokens and issuing an equal number of tokens on Avalanche, a process known as wrapping.
The Chainlink PoR integration will enable users to check that Aave markets are collateralized and lessen the risks of utilizing wrapped tokens by providing automated on-chain data feeds, which is one of the potential issues with using wrapped tokens.
“Having real-time access to the condition of cross-chain liquidity pools strengthens the transparency and verifiability of the Aave market on Avalanche,” Stani Kulechov, founder and CEO of Aave Companies, said. “Increasing visibility into reserve collateral is a vital step forward that will help end-users gain confidence and trust.”
For more articles visit : Cryptotechnews