Ren Network Leverages ChainLink’s Oracle for Onchain Proof of Machanism

Chainlink’s oracle has been leveraged on by Ren in the network’s quest to authenticate the onchain transparency and auditability of assets. Ren which recently linked up in the DEFi space with a support for BTC, BCH and ZEC announced that the collaboration with Chainlinks takes advantage of the latter’s secure decentralized oracle.

With the development, Ren, a decentralized network built on Ethereum can independently verify assets collaterization as the need arises.

RenVM holds $900 million in bridged assets and $270 million in cross-chain assets. These are locked asset the network holds in the DEFi space due to real market demand.

According to an October 5 Medium post,

“Ensuring these wrapped tokens are fully collateralized by assets on their native chain is critical to the security of cross-chain protocols like Ren. As such, we are adopting Chainlink’s Proof of Reserve as a highly secure and reliable mechanism for users and dApps to leverage in order to audit the collateralization of Ren assets in a fully automated and censorship-resistant manner,”

The collaboration would remove the need for manual checks and monthly reports.

The system works by calling the Chainlink’s Proof of Reserve Reference Contract. This stores data on each of the assets held by Ren, and would be deployed on the Ethereum network for each of the assets – renBTC, renBCH and renZEC.

Chainlink oracle has become a protocol of choice for many DeFi platforms due to its transparency, data reliability and security. According to the blog post;

“We selected Chainlink as our go-to oracle solution because it’s the most decentralized, time-tested, and widely adopted oracle in DeFi, currently securing billions of dollars live on mainnet for leading applications like Aave and Synthetix.”

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.

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