Ren announced a new partnership with Chainlink. The two teams will collaborate t create a Proof of Reserve mechanism for Ren. The mechanism is now live on testnet and will be launched on mainnet soon.
Chainlink’s solutions will make it possible for Ren to audit the cross-chain assets in its platform faster. The first assets included in the partnership are renBTC, renBCH, and renZEC; the most used tokens in Ren’s DeFi ecosystem.
More Transparency for DeFi Applications
The new collaboration between Chainlink and Ren focuses on transparency and auditability in DeFi applications. Smart contracts can now benefit from Chainlink’s decentralized oracle and verify the Ren’s collaterals in real-time.
The enhanced security and reliability of Chainlink oracles are the first reasons Ren has chosen them.
“We’re thrilled to make Chainlink’s Proof of Reserve feature available to the Ren ecosystem, providing users with additional security features that further enhance the reliability of Ren assets as key sources of collateral and payment in the DeFi ecosystem,” stated Loong Wang, CTO, and Co-founder of Ren.
“Chainlink’s ability to automate the on-chain auditing process in a highly reliable and transparent manner, allows users to further trust Ren assets without having to manually track the reserves on their own.”
Chainlink will provide the Proof of Reserve Reference Contracts to smart contracts in the Ren ecosystem. They will be able to call for data about the reserved assets from the reference feeds. The contract runs on Ethereum and currently supports on-chain assets mentioned above.
There are addresses on Bitcoin, Bitcoin Cash, and Zcash that hold the reserves for Ren applications, controlled by Ren Darknodes. Chainlink monitors those addresses in real-time and keeps the Proof of Reserve mechanism up to date. Then the decentralized oracle will push data on-chain for DeFi applications if any derivation happens beyond the specified threshold.
Ren, like many other partners of Chainlink, will help them in price reference data feeds. It will provide price data about assets based on RenVM. As a result, DeFi application working with those assets will have access to real-time price, if they integrate Chainlink oracle.
If you found this article interesting, here you can find more Chainlink News
