- Swell incorporates Chainlink’s Proof of Reserve to improve rswETH’s liquid reserve token, transparency.
Chainlink’s Cross-Chain Interoperability Protocol will support Swell’s future Layer 2 solution, Swell L2 (CCIP).
Swell Network has announced the integration of Chainlink’s Proof of Reserve (PoR) on the Ethereum blockchain, which is a major step forward for the decentralized finance (DeFi) ecosystem.
The goal of this integration is to provide Swell’s liquid restaking token, rswETH, with an unmatched level of transparency. Swell and Chainlink have been working together for a while now, as part of a partnership that aims to support liquid staking and restaking in the DeFi space.
Swell’s founder, Daniel Dizon, showed his excitement about the integration by stating:
“We’re thrilled to integrate the industry-standard Chainlink Proof of Reserve to help monitor rswETH reserves in a reliable and timely manner. We’re also excited that Chainlink will support Swell L2 with Chainlink CCIP. By continuing our long-standing collaboration with Chainlink, we’re able to more effectively drive the growth of staking and restaking across DeFi.”
A New Chapter of Openness and Trust
An important turning point for Swell’s users—especially liquid restakers—is the integration of Chainlink’s PoR.
The strong monitoring capabilities of Chainlink’s PoR service guarantee that the ETH reserves supporting the rswETH tokens are transparent and verifiable on-chain, in line with what ETHNews previously disclosed.
Because it offers users up-to-date information on reserve status and reduces the danger of reserve inconsistencies, this degree of transparency is essential to building user trust and confidence.
Apart from the PoR integration, Swell is getting ready to introduce Swell L2, its Layer 2 solution for restaking. With the help of Chainlink’s Cross-Chain Interoperability Protocol (CCIP), this solution seeks to further protect and streamline the restaking process.
Swell L2 is also well-positioned to establish new benchmarks for cross-chain communication and security in the DeFi area. Watch the video on YouTube below to go deeper into this development.
The Multi-Faced Support of Chainlink
The integration between Swell and Chainlink goes beyond CCIP and PoR. Swell is utilizing a number of Chainlink’s services by signing up for Chainlink BUILD, such as pricing fees for dependable and accurate pricing data and cross-chain services for safe swETH transfers.
The fact that these connections have helped Swell reach a noteworthy milestone of more than $1 billion in total value locked (TVL) highlights how well Chainlink’s technology works to improve the DeFi ecosystem.
Also, CEO of Chainlink, Sergey Nazarov, emphasized the benefits of utilizing Chainlink’s DeFi innovations while highlighting the possibility of reconstructing the world using blockchain technology at the Hong Kong Web3 Festival in 2024.
Sentiment in the Market
There have been some recent adverse tendencies in the cryptocurrency market as a whole, including LINK, the native token of Chainlink. As of this writing, LINK is at $17.41, a drop of 2.05% from the previous day and more than 4% from the previous week, according to data from CoinGecko.
These market changes show how unpredictable the cryptocurrency space is and also how important it is for DeFi protocols to bring in reliable technologies like Chainlink’s Proof of Reserve to enhance security and take advantage of blockchain.