Interest Protocol has a strategic partnership with Chainlink Labs to enhance the security of its platform
The lending protocol will receive strategic advice from the company and integrate two newly designed Chainlink features to create a more powerful and efficient user experience.
Chainlink’s expertise will come to the Protocol of interest
Launched in June 2022, Interest Rate Protocol (IP) is one of the youngest lending platforms on the market. The platform has integrated the Chainlink Price Feed, allowing the platform to bookmark to market user-posted collateral with tamper-proof price data.
In addition to receiving strategic advice from Chainlink Labs, the partnership will allow 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 allow IP to automate smart contract functions and monitor insolvency loans. The Keepers Network will automatically liquidate any loans that are found to be inadequately collateralized.
Proof-of-Reserve automatically verifies off-chain collateral in real time. PoR integration will protect IP users from fraudulent activities from off-chain custodians, such as substandard reserve operations and lack of disclosure. The Chainlink PoR implementation automates on-chain verification and provides users with the assurance of the underlying collateralization of an asset.
Getty Hill, founder of GFX Labs, the company behind IP, says that oracles are essential for financial instruments because they ensure smart contract automation, allow real-time reserve verification, and provides 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 livetechit.
“We are pleased to support Interest Protocol in building a new borrowing/lending protocol,” said Johann Eid, Vice President of Marketing at Chainlink Labs. “By integrating Chainlink’s many trust-reducing services, Interest Protocol can scale its platform faster, save valuable technical resources, and get closer to its goal of efficiency.” more capital use for DeFi.”