Decentralized crypto lending platform Aave will integrate the ChainLink Proof of Reserve (PoR) system for network security.
The wind of DAO continues to blow in the crypto industry. Decentralized anonymous organizations are attracting the attention of many crypto investors. DAO projects receive reactions based on voting results from their communities. This makes investors feel more secure. One of these projects, Aave, went to a new vote by the DAO. In this vote, improving network security came to the fore. The popular project will implement integration with ChainLink PoR to increase customer trust.
Aave DAO Brings Chainlink Proof of Reserve Integration
Decentralized crypto project Aave brings ChainLink’s PoR system to reduce the risk of attack to the network structure and project.
In the new era that started with the bankruptcy of FTX, centralized exchanges made various moves for reliability. One of these moves was the Proof of Reserve (PoR) system. On the other hand, decentralized projects started to choose the same works.
Aave will begin implementing the PoR system to protect its assets bridged to the Avalanche network. Although bridged assets provide various efficiencies, they can create many vulnerabilities. The aim of the popular lending platform will be to become a safe structure by preventing the risks that may arise from these vulnerabilities.
Bored Ghost Development, which made the proposal on the DAO side, thinks that PoR smart contracts will reach an extra layer of security of Aaeve. “Taking advantage of the Chainlink Proof of Reserve, Aave can verify that bridged assets accepted on the platform are fully collateralized before allowing users to borrow against them,” said Max Melcher, responsible for PoR marketing at ChainLink Labs.
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