Interest Protocol has entered into a strategic partnership with Chainlink Labs to increase the security of its platform
The lending protocol will receive strategic advice from the company and integrate two new Chainlink features that are set to create a more robust and efficient user experience.
Chainlink’s expertise is coming to Interest Protocol
Launched in June 2022, Interest Protocol (IP) is one of the youngest lending platforms on the market. The platform has already integrated Chainlink Price Feeds, which enabled the platform to mark-to-market the collateral posted by its users with tamper-proof price data.
Aside from receiving strategic advice from Chainlink Labs, the partnership will enable IP to integrate both Chainlink Keepers and Chainlink Proof of Reserve (PoR).
Chainlink Keepers is a decentralized transaction automation service operated by Chainlink node operators. It will enable IP to automate smart contract functions and monitor loans for insolvency. The Keepers network will automatically liquidate any loan found to be insufficiently collateralized.
The Proof-of-Reserve autonomously verifies off-chain collateral in real-time. Integrating PoR will protect IP users from fraudulent activities from off-chain custodians, such as substandard reserve practices and a lack of disclosures. Deploying Chainlink PoR automates on-chain verification and provides users with a guarantee of an asset’s underlying collateralization.
Getty Hill, the founder of GFX Labs, the company behind IP, said that oracles are essential to financial tools as they secure smart contract automation, enable real-time reserve verification, and provide high-quality market data. Working with Chainlink Labs and integrating their solutions will help the company build a more transparent and capital-efficient DeFi ecosystem, she told CryptoSlate.
“We’re excited to support Interest Protocol in building a novel borrow/lend protocol,” said Johann Eid, the VP of go-to-market at Chainlink Labs. “By integrating multiple Chainlink trust-minimized services, Interest Protocol can scale its platform faster, save precious engineering resources, and get closer to its goal of bringing more capital efficiency to DeFi.”