Date - Cryptocurrency X Webflow Template
June 18, 2024
Reading Time - Cryptocurrency X Webflow Template
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 min read

DLC.Link Integrates Chainlink Proof of Reserve (PoR) and CCIP To Support dlcBTC Adoption

DLC.Link has integrated Chainlink's Proof of Reserve and Cross-Chain Interoperability Protocol on Arbitrum and Ethereum to enhance dlcBTC's transparency and enable secure cross-chain transfers, ensuring fully backed and verifiable Bitcoin collateralization.

We’re excited to announce that DLC.Link has integrated the industry-standard Chainlink Proof of Reserve (PoR) on Arbitrum mainnet to enhance the transparency of the reserves backing dlcBTC. DLC.Link has also integrated Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum and Ethereum mainnets to enable dlcBTC to be transferred cross-chain.

When dlcBTC is minted, the dlcBTC Proof of Reserve Feed helps verify that sufficient collateral is available on the dlcBTC Bitcoin bridge. This integration provides an additional layer of verification and security to help ensure that the outstanding supply of dlcBTC cannot exceed the amount of collateral backing it.

We selected CCIP as our preferred interoperability solution for enabling cross-chain transfers of dlcBTC because Chainlink has the most proven track record of maintaining the highest standard of security and reliability in the Web3 industry. Furthermore, CCIP is backed by the Risk Management Network—a separate, independent network that continually monitors and verifies cross-chain operations for suspicious activity. This additional layer of security is particularly important given historical industry exploits and the billions in user funds lost due to insecure and unreliable cross-chain infrastructure.

dlcBTC is a safer wrapped Bitcoin minted from self-custody on the Arbitrum network, enabling Bitcoin holders to participate in DeFi protocols while retaining full ownership of their assets. It employs discreet log contracts (DLCs) to lock Bitcoin in a multisig UTXO, with one key held by the user and the other distributed across a decentralized network.

With dlcBTC’s backing verified by Chainlink Proof of Reserve, dlcBTC users can now have increased assurances and confidence that dlcBTC is fully backed by Bitcoin holdings. This PoR feed is a type of cross-chain reserves feed where DLC.Link self-attests to which wallet we own via the PoRAddressList wallet address manager contract. The feed then calculates and reports total cross-chain reserves. Learn more about evaluating data sources and risks.

Some benefits of Proof of Reserve include:

  • Automated Onchain Verification—By keeping an up-to-date reference contract, users can access automatic and frequent updates on dlcBTC’s underlying Bitcoin collateralization.
  • Decentralized — Chainlink Proof of Reserve eliminates central points of failure in the delivery of external data to blockchains, helping ensure reliable onchain updates at all times regarding dlcBTC’s collateralization.
  • Transparent — Chainlink Proof of Reserve Feeds can be monitored by anyone in near real-time, allowing any user to verify asset collateralization independently.

“Chainlink has an unmatched track record in security, which is why we decided to use the industry-standard Proof of Reserve to help enhance the transparency of the Bitcoin reserves backing dlcBTC. By continuing our long-standing collaboration with Chainlink, we’re able to drive the growth and adoption of Bitcoin across DeFi. ”—Aki Balogh, Co-Founder, DLC.Link 

About Chainlink

Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $10 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors. 

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.

About DLC.Link

DLC.Link harnesses the power of Discreet Log Contracts (DLCs) to establish a trustless bridge between Bitcoin and Ethereum. DLC.Link launched dlcBTC, enabling depositors to self-wrap their Bitcoin for DeFi on Ethereum while retaining full custody of their assets. This innovation transforms Bitcoin's role in DeFi, empowering depositors to engage in trading, lending, and hedging while maintaining self-sovereignty. For more details, visit www.dlc.link