Cryptocurrency exchange Gemini is set to sponsor a Proof of Reserve (PoR) data feed on oracle solution Chainlink.
Through the feed, DeFi platforms can monitor EFIL collateralisation directly on-chain and ensure that sufficient reserves are available before completing any transactions. Gemini said it was sponsoring the PoR data feed to further enhance the assurances made to DeFi platforms using EFIL.
.@Gemini is sponsoring a new #Chainlink Proof of Reserve Feed to support the launch of its Wrapped Filecoin (EFIL) token, enabling DeFi protocols to perform automated on-chain audits to verify that EFIL is fully backed 1-to-1 by FIL held in Gemini custody. https://t.co/ChJvF7Dh6j
— Chainlink – Official Channel (@chainlink) September 23, 2021
The PoR feed will use a Chainlink-powered decentralised oracle network to consistently monitor the balances of Gemini’s Filecoin custody wallet. Additional proof of the 1-to-1 collateralisation ratio with Filecoin will also be held by Gemini Custody – its native custodial offering.
Tyler Winklevoss, CEO of Gemini, spoke of the added confidence the Chainlink PoR feed will bring to DeFi users.
“By providing a Proof of Reserve data feed for EFIL, Chainlink’s decentralised oracle network will instil confidence in EFIL with automatic on-chain audits, helping to secure user funds and ensure the reliability of the system,” he said.
“As we continue to build bridges to DeFi, Chainlink offers a proven oracle infrastructure for helping us realise our vision of building a secure and transparent ecosystem.”
The collaboration further bolsters Chainlink’s reputation as the industry-leading oracle solution and its integral role in the burgeoning DeFi ecosystem. Chainlink co-founder Sergey Nazarov commented on how the feed could help Gemini better protect user funds and the importance of Chainlink in securing DeFi platforms.
“In automating on-chain audits of wrapped assets like EFIL, Chainlink Proof of Reserve helps ensure end-to-end transparency around off-chain assets and empowers developers to preprogram smart contracts to instantly protect user funds when collateral deviates from predefined thresholds,” he said.
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