Chainlink Proof of Reserve will now be integrated into Swingby’s Skybridge platform, which is available on the Ethereum mainnet. Chainlink is a technology that allows users to move easily across different blockchains without the need for a central custodian. Skybridge is a solution developed by Swingby that enables the creation of trustless bridges between notable blockchains such as Bitcoin and Ethereum as well as other blockchains. Users are no longer reliant on centralized custodians thanks to this functionality, which enables them to relocate their assets and utilize DeFi ecosystems on other chains.
Chainlink is the biggest decentralized oracle network on the planet. It is protecting smart contracts worth tens of billions of dollars across multiple blockchains such as Ethereum, Avalanche, Solana, and the Binance Smart Chain. Proof of Reserve is a service offered by Chainlink that facilitates accurate and timely management of reserve assets through the utilization of cryptographically-based automated audits.
Protecting Users From Minting Or Swapping Undercollateralized BTC
Skybridge is able to verify, thanks to the incorporation of Chainlink Proof of Reserve, that the quantity of Bitcoin stored in the reserves wallet is equivalent to the number of Wrapped Bitcoin (WBTC) tokens that are held on Ethereum. This indicates that if Proof of Reserve detects that certain assets have become unpegged, Skybridge will then halt the ability for users to transfer tokens or mint new tokens until the problem has been remedied. This helps protect users from being able to mint new WBTC or swap existing ones in the event that the BTC reserves are not adequately collateralized.
Other Chainlink solutions include Chainlink Price Feeds, which are currently live on Moonbeam and Solana, and Chainlink VRF, which is utilized for provable randomization by NFT initiatives like BAYC and CyberKongz and is also employed across a variety of blockchain gaming and NFT platforms.
According to Senga Yusaku, CEO of Swingby:
“We consider Chainlink Proof of Reserve to be mission-critical decentralized infrastructure for Swingby’s Skybridge, and it will play a key role in preventing users from minting new WBTC tokens or swapping them if the BTC reserves become unpegged from the WBTC token supply. Security is paramount when building a bridge across blockchains, and Chainlink’s battle-hardened and time-tested oracle network is the most reliable in the industry.”
A More Reliable Form Of Collateral In DeFi And Smart Contract Verticals
It is Swingby’s intention to provide users of Skybridge with a source of information that is accurate, dependable, and transparent so that they may mint WBTC with complete peace of mind. As a consequence of this, WBTC has ultimately become a more trustworthy form of collateral and payment across the board in the DeFi and other smart contract fields. Chainlink Proof of Reserve has been successfully integrated on the Ethereum mainnet, and future integrations are anticipated for Avalanche, Polygon, and other blockchains as well.
Additionally, they have their sights set on securing assets other than Bitcoin on Skybridge in the future with the assistance of Chainlink Proof of Reserve. Planet IX integrated Chainlink Keepers, Crabada integrated Chainlink Keepers and VRF, Biswap integrated Chainlink VRF, and Truflation announced its UK inflation index, which is driven by the Chainlink network. These are just some of the other Chainlink-related announcements that were made last week.