Decentralized finance (DeFi) is about economic transparency and changing the fundamental trust philosophy of how financial transactions are conducted. Through smart contracts, transparency and trustlessness have been achieved at the base protocol layer, but as exotic new financial instruments continue to emerge across the DeFi space, our ecosystem needs increasingly robust infrastructure for securing these protocols and the data feeding in and out of them. This is where Chainlink comes in, the blockchain agnostic, secure, decentralized data layer for smart contracts.
One DeFi instrument that is already benefiting from Chainlink’s high-quality data feeds are stablecoins, digital assets backed by either off-chain or cross-chain collateral. Stablecoins provide users the ability to transact in a non-volatile currency, while still offering the permissionless nature of blockchain-based smart contracts and the high yield that continues to attract new users to DeFi. With Chainlink’s Proof of Reserve feeds, developers and users can now trustlessly verify that backed assets like wrapped tokens and stablecoins are fully backed by the collateral they claim to be. Proof of Reserve also provides a higher level of reliability and transparency around collateralized loans, credit default swaps, cross-chain token swaps, and more.
As with all Chainlink data feeds, ease of access is a priority, making it simple for developers to integrate pre-aggregated, reliable off-chain data into their dApp. In this guide, we’ll go over how to quickly leverage Chainlink Proof of Reserve to prove the collateralization of a stablecoin, specifically TrustToken’s TUSD.Initialize the Feeds
The first step with any Chainlink data feed is importing the aggregator interface, and then initializing the feeds with the correct address in the constructor.pragma solidity ^0.6.7; import "https://github.com/smartcontractkit/chainlink/blob/master/evm-contracts/src/v...