Chainlink is collaborating with another popular DeFi project RenVM to improve the “transparency and auditability” of renBTC, renBCH, and renZEC.
Last week, we reported how Chainlink joined hands with BitGo for auditing Wrapped Bitcoin (WBTC), which has nearly $1 billion BTC bridged on Ethereum.
The popular decentralized oracle network has already secured billions of dollars for leading DeFi protocols like Aave and Synthetix, and now it has found a new partner in RenVM.
Ren has just over $300 million funds locked in it with its token REN trading at $0.263, down only 7.4% since Oct. 1st, unlike many other Defi projects which have crashed during this period. LINK itself is down 51% from its ATH of $20, hit in mid-August.
RenVM, which has $900 million bridged, will be using Chainlink’s Proof of Reserve mechanism, fully automated and censorship-resistant, which is live on testnet and will soon be coming to mainnet.
By leveraging Chainlink, “smart contract applications on the Ethereum blockchain now have the ability to autonomously verify on-demand the current collateralization of each cross-chain asset minted within the Ren ecosystem,” said Michael Burgess, COO at RenVM.
Here, a Proof of Reserve Reference Contract will be deployed on Ethereum for renBTC, renBCH, and renZEC each. Through Chainlink’s oracles, the contracts will be kept up to date with the most recent collateralization. In case of deviation in reserves due to new minting or burning events, push an update.
Ren will also support Chainlink’s Price Reference Feeds to ensure RenVM based assets are “highly reliable” to be used as collaterals in DeFi. Loong Wang, CTO, and Co-founder of Ren said,
“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 track the reserves on their own manually.”