Interest Protocol has formed a strategic alliance with Chainlink Labs to improve the security of its platform.
The lending protocol will receive strategic advice from the company and will incorporate two new Chainlink features aimed at providing a more robust and efficient user experience.
Interest Protocol will benefit from Chain link’s expertise
Interest Protocol (IP), which debuted in June 2022, is one of the market’s newest lending platforms. The platform already has Chainlink Price Feeds integrated, allowing it to mark-to-market the collateral posted by its users with tamper-proof price data.
Apart from receiving strategic advice from Chainlink Labs, the collaboration will allow IP to integrate Chainlink Keepers and Chainlink Proof of Reserve (PoR).
Chainlink Keepers is a decentralized transaction automation service run by Chainlink nodes. It will allow IP to automate smart contract functions and track loan insolvency.
Any loan found to be insufficiently collateralized will be automatically liquidated by the Keepers network.
In real-time, the Proof-of-Reserve verifies off-chain collateral autonomously. Integrating PoR will protect IP users from fraudulent off-chain custodian activities such as poor reserve practices and a lack of disclosures.
Chainlink PoR deployment automates on-chain verification and provides users with a guarantee of an asset’s underlying collateralization.
Oracles, according to Getty Hill, the founder of GFX Labs, the company behind IP, are critical to financial tools because they secure smart contract automation, enable real-time reserve verification, and provide high-quality market data.
She told Crypto Slate that working with Chainlink Labs and integrating their solutions will help the company build a more transparent and capital-efficient DeFi ecosystem.
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