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Chainlink Brings Onchain Proof of Reserve to RenVM

Chainlink oracles keep the Proof of Reserve Reference Contracts up to date with the most recent collateralization by monitoring the addresses on the Bitcoin, Bitcoin Cash, and Zcash blockchains that hold these reserves, of which are controlled by Ren Darknodes. Chainlink nodes monitor these addresses off-chain, and only push aggregated on-chain updates to the Proof of Reserve Contracts when they notice a deviation (change) in the reserves beyond a defined threshold (e.g. 1%), likely the result of new minting/burning events. Leveraging this update model ensures fresh data is always delivered on-chain when there is any relevant deviation in the amount of reserves, while simultaneously reducing unnecessary on-chain transactions when there are very little to no changes.

If a black swan incident were to occur, such as a deviation between the amount of assets reported by the Proof of Reserve contract and the amount of minted Ren assets on the Ethereum blockchain, decentralized applications can employ customized logic to swiftly protect user funds. For example, money market protocols that use Ren assets as collateral can check their true collateralization before allowing any borrowing/lending interactions to occur. This autonomous and trustless protection of user funds is only made possible by the ability to atomically interact with the reserve data hosted on-chain, which is continuously updated by Chainlink oracles.

We selected Chainlink as our go-to oracle solution because it’s the most decentralized, time-tested, and widely adopted oracle in DeFi, currently securing billions of dollars live on mainnet for leading applications like Aave and Synthetix. Chainlink’s Proof of Reserve oracle networks are secured by a decentralized network of Sybil resistant node operators, ensuring data updates are highly available and resistant to manipulation. It’s also highly transparent, as any Ren user can independently monitor the performance of the oracles maintaining...

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