BGD Labs Announces the Integration of Chainlink Proof of Reserve onto the Aave Protocol
Chainlink PoR Now Helps Verify the Collateralization of Wrapped Tokens on Avalanche Mainnet
SAN FRANCISCO, Feb. 7, 2023 /PRNewswire/ — BGD Labs, a Web3 development initiative, and Chainlink, the industry-standard Web3 services platform, announced today the integration of Chainlink Proof of Reserve (PoR) onto the Aave Protocol on Avalanche mainnet. This integration helps ensure that wrapped tokens in Aave markets on Avalanche are sufficiently collateralized, mitigating risks associated with using wrapped tokens on the Aave protocol. Chainlink Proof of Reserve feeds now support the following wrapped assets: AAVE.e, DAI.e, LINK.e, WBTC.e, and WETH.e.
Aave is one of the largest decentralized liquidity protocols in the world, and Chainlink oracles have helped enable over $2 trillion in transaction flows on Aave in 2022 alone. Chainlink PoR utilizes the largest decentralized collection of security-reviewed and Sybil-resistant node operators in the industry to verify and monitor on-chain and off-chain assets, including wrapped tokens. BGD Labs’ integration of Chainlink on the Aave Protocol helps ensure bridged assets are properly collateralized.
“We’re pleased to support the Aave Protocol and community by integrating Chainlink Proof of Reserve,” said Ernesto Boado, Co-Founder, BGD Labs. “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.”
Some of the main benefits of using Chainlink PoR include automated on-chain verification, high quality data through customizable external adapters, decentralization at the data source and oracle node level, and transparency in anyone’s ability to monitor PoR at any time.
“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.”
“We are excited that Aave is using Chainlink Proof of Reserve to help ensure that cross-chain assets in Aave pools on Avalanche are sufficiently collateralized,” said Sergey Nazarov, Co-Founder of Chainlink. “Fully-decentralized, automated verification through Chainlink PoR helps mitigate undercollateralization risks that cross-chain bridges can pose to Aave markets.”
About BGD Labs
BGD Labs (Bored Ghosts Developing http://bgdlabs.com/) is a Web3 initiative of enthusiasts in decentralized finance (DeFi), governance, and other blockchain technologies. Currently, BGD Labs is fully focused on contributing to the Aave ecosystem.
About Chainlink
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.
About Aave Protocol
Aave Protocol is a non-custodial, open-sourced decentralized liquidity protocol that enables users to supply and borrow crypto assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/bgd-labs-announces-the-integration-of-chainlink-proof-of-reserve-onto-the-aave-protocol-301740113.html
SOURCE Chainlink; BGD Labs
