Celsius announced integrating Chainlink Proof of Reserve (PoR) to enable the creation of auditable and highly secure cross-chain wrapped tokens.
With this integration, the popular lending platform that enables users to earn interest on deposited crypto will successfully bridge wrapped versions of Cardano, Dogecoin, and Ethereum to the Polygon mainnet.
Chainlink is a blockchain-agnostic protocol that leverages the largest collection of decentralized services–supporting over 700 oracle networks.
Unlocking cross-chain liquidity
Cardano, Dogecoin, and Ethereum users are about to reap the benefits of the increased cross-chain token utility and access to DeFi ecosystems on non-native blockchains.
As for Celsius, the platform will be expanding its cross-chain wrapped token offerings and supported blockchains in the near future.
Chainlink PoR will help keep Celsius accountable–enabling anyone to verify the collateralization of Celsius’ wrapped cross-chain tokens in real time.
“Chainlink PoR replaces lengthy, opaque audits with automated, transparent audits backed by cryptographic truth, empowering users to verify asset collateralization in a way that outmatches traditional solutions,” explained Sergey Nazarov, Co-founder of Chainlink.
The integration will help secure the minting process of Celsius’ wrapped tokens, by ensuring they are minted only when there are enough reserves available in the vault.
Celsius is using a tailor-made Enzyme vault on Ethereum for the secure vault system.
Featuring built-in accounting functionality, fully transparent on-chain account management, and multiple whitelisted dApps, Enzyme, which is currently managed by Celsius, will be controlled by a community DAO in the future.
“Celsius’ integration of Chainlink PoR will mark another large leap towards creating hybrid CeDeFi systems that combine CeFi’s functionality and performance with DeFi’s decentralization and transparency guarantees. Celsius has a long history of leveraging Chainlink’s industry-leading oracle network because it provides tamper-proof real-world data and off-chain computation that creates an unrivaled user experience for our community,” according to Celsius Network Founder and CEO Alex Mashinsky.
CCIP integration to follow
“We also look forward to our near-term integration of CCIP to unlock even greater cross-chain functionality that will power more advanced smart contract applications,” added Mashinsky, noting that Celsius will soon be implementing Chainlink’s Cross-Chain Interoperability Protocol.
The open-source standard for cross-chain communication leverages decentralized messaging and token movements.
Unlike PoR integration, where the Celsius application wraps and unwraps tokens and Chainlink PoR is used to keep Celsius accountable, implementing CCIP will help wrap and unwrap tokens in a fully decentralized way–not relying on the Celsius application.
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