Interest Protocol, a borrow/lend protocol launched in June 2022, has announced a strategic partnership with Chainlink Labs. Interest Protocol previously incorporated Chainlink Price feeds for data.
Interest Protocol states that it is integrating Chainlink Keepers to help automate smart contract functions. Chainlink Proof of Reserves (PoR) is said to provide robust oracles for off-chain asset attestations.
Interest Protocol claims it will bring the next wave of assets to DeFi, and the partnership will accelerate this goal.
Interest Protocol is a “borrow/lend protocol” that aims to bring to DeFi a fractional reserve system similar to what banks utilize today. Interest Protocol users post wETH, wBTC, and UNI as collateral and borrow a stablecoin USDi.
Interest Protocol is an “overcollateralized, fractional reserve lending protocol” on Ethereum that pays interest to users that hold its native stablecoin.
Chainlink Keepers is a decentralized transaction automation service and will be used to monitor Interest Protocol loans for insolvency. If a loan is found to not be sufficiently collateralized, the Keepers network will automatically trigger a liquidation.
Chainlink Proof of Reserve seeks to enable the autonomous verification of off-chain collateral in real-time, ensuring users are protected.
“We’re excited to be working with Chainlink to build a more transparent and capital-efficient DeFi ecosystem,” stated Getty Hill, Founder of GFX Labs. “Whether it’s high-quality market data, secure smart contract automation, or real-time verification of reserves, oracles are essential to financial tools.”
Johann Eid, VP of go-to-market at Chainlink Labs, explained that by using their service, Interest Protocol can scale its platform faster, while saving engineering resources. Chainlink reports that it currently secures tens of billions of dollars across DeFi.
