Neutrino protocol is the latest project to announce an integration with the Chainlink network, an update that comes on the back of a long line of developments in the latter’s ecosystem. This integration will help Neutrino transfer its stablecoin Neutrino Dollar [USDN], along with other tokens, between the two blockchains.
Chainlink’s Proof of Reserve oracle network was developed to provide end-to-end transparency to the DeFi ecosystem. It provides smart contracts with the data needed to calculate the true collateralization of on-chain assets backed by off-chain reserves. Thus, with integration with Neutrino protocol, Chainlink will provide regular, on-demand verification of the reserves backing USDN across multiple blockchains issuing USDN.
USDN was running mostly on the Waves platform and was ported to the Ethereum blockchain last year. This helped to make the USDN accessible on Ethereum, enabling Ethereum users to stake rewards by just holding the stablecoin in their Ethereum wallets. Due to porting on Ethereum, the issuance of USDN on the Ethereum blockchain is accompanied by locking an equal amount on the Waves blockchain.
According to the announcement, this made it necessary “to introduce an external off-chain service (oracle) that monitors the locked balance on the Waves gateway account and verifies that there is exactly the same amount of USDN tokens issued on Ethereum.” The PoR oracle’s main goal will be to prove that the reserves and minted token balances are equivalent across two or more blockchains having different APIs.
Additionally, QuiverX Capital, Ltd., also announced the integration of Chainlink’s PoR oracle. A customized PoR solution for the platform will help in retrieving data regarding the quarterly business revenue of SMEs listed on the QuiverX platform, while delivering it on-chain.
Chainlink and its oracles have been noting a strong rise in adoption over the past year. Many projects have been teaming up with Chainlink to create a more transparent and helpful ecosystem for its users and Paxos was a recent addition to it. It announced teaming up with Chainlink to make its asset-backed token available across the decentralized finance [DeFi] market.
