Alongside, a platform enabling broad based exposure to the crypto market in a single token (AMKT)—is using Chainlink Proof of Reserve on Polygon mainnet.
Integrating the decentralized Oracle network “helps enable Alongside transparently verify the asset reserves underlying AMKT, which track the top 25 assets in the crypto space.”
Alongside is described as “an open finance community connected by an ethos of extreme transparency, low fees, and long-term investing.”
The community works together “to build products that make it easy for anyone to access the cryptoasset market.” Alongside’s first product is AMKT—”a total market index token that tracks the top 25 digital assets in crypto passively by market cap.”
AMKT is “rebalanced monthly and reconstituted on a quarterly basis to stay up-to-date with the latest market movements.” Users can “see the current percentage breakdown of AMKT reserve assets on Alongside’s website.”
In line with “the commitment to extreme transparency, they integrated Chainlink Proof of Reserve to help prove the reserve assets underlying AMKT are securely held in custody.”
This means anyone “can see near real-time, on-chain updates to AMKT reserve assets transparently.”
Some of the main benefits of using Chainlink PoR include:
- Automated On-Chain Verification — By keeping an up-to-date reference contract, smart contracts can get automated, on-chain verification of wrapped asset collateralization, removing the need to conduct manual audits.
- High-Quality Data — Through the use of customizable External Adapters, Chainlink can source data from premium data providers who are financially incentivized to provide highly accurate and available data.
- Decentralized — Chainlink Proof of Reserve Feeds are decentralized at the data source and oracle node level, eliminating central points of failure in the sourcing and delivery of external data.
- Transparent — Chainlink Proof of Reserve Feeds can be monitored by anyone in real-time, allowing any user to verify asset collateralization independently.
Chainlink Proof of Reserve is “available for both off-chain assets and cross-chain assets.”
This PoR feed is “a type of off-chain reserves feed that pulls reserves data directly from the Coinbase Custody API.” As Coinbase has direct access to the accounts or vaults holding the reserve assets, it can “calculate the total value of reserves and report the data on-chain via an external adapter.”
Austin Diamond, Co-Founder at Alongside, said:
“AMKT holders should never have to trust us when we say AMKT is backed 1:1 with the underlying constituents. Chainlink Proof of Reserve helps them verify AMKT’s 1:1 backing is always 1:1 backing. Extreme transparency is at the core of Alongside, and Chainlink Proof of Reserve helps us deliver that.”
Technical information about the implementation of the AMKT PoR oracle can be found on the AMKT DAO Documentation.
Check here for more details.