The creation of auditable and highly secure cross-chain wrapped token was made possible by integrating Chainlink Proof of Reserve PoR.
The popular platform that allows users to earn interest on deposited criptocurrency will be able to bridge wrapped versions of Cardano, Doge coin, andEthereum to the Polygon mainnet with this integration.
Chainlink is a distributed ledger protocol that uses the largest collection of services to support over 700 oracle networks.
The added cross-chain token utility and access to DeFi ecosystems on non-native blockchains are some of the benefits for Cardano, Doge coin, andEthereum users.
The platform will be expanding its cross-chain wrapped token offerings and supporting ledgers in the near future.
Chainlink PoR will allow anyone to verify the collateralization of Celsius wrapped cross-chain token in real time.
Chainlink PoR replaces long, opaque audits with automated, transparent audits backed by cryptgraphic truth, empowering users to verify asset collateralization in a way that outmatches traditional solutions, said Sergey Nazarov, Co-founder of Chainlink.
The integration will help secure the minting process of Celsius wrapped tokens, by making sure they are minted only when there are enough reserves available in the vault.
The vault is secured by using a custom Enzyme vault onEthereum.
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 in the future by a community DAO.
The integration of Chainlink PoR will be a big leap towards creating hybrid CeDeFi systems that combine CeFi's functionality and performance with DeFi's decentralization and transparency guarantees. According to Alex Mashinsky, Celsius Network founder and CEO, Alex Mashinsky is 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.
Mashinsky said that Celsius will soon be implementing Chainlink's Cross-Chain Interoperability Protocol, and we look forward to our near-term integration of CCIP to unlock even greater cross-chain functionality that will power more advanced smart contract applications.
The open-source standard for cross-chain communication uses decentralized messaging and token movements.
Unlike the PoR integration, where the Celsius application wraps and unwraps token and Chainlink PoR is used to keep Celsius accountable, implementing CCIP will help wrap and unwrap token in a fully decentralized way, not relying on the Celsius application.