Swingby integrates with Chainlink Proof of Reserve with Skybridge on the Ethereum mainnet. Swingby’s Skybridge provides bridges between Bitcoin, Ethereum, and other blockchains, enabling users to move their assets and access DeFi ecosystems on other chains without relying on a central custodian.
By integrating Proof of Reserve, Skybridge can check that the amount of Bitcoin custodied in the reserves wallet matches the number of Wrapped Bitcoin (WBTC) tokens on Ethereum.
If Chainlink Proof of Reserve reports that these assets have become unpegged, Skybridge will suspend the ability for users to swap or mint new tokens until the issue has been resolved. In addition, this helps protect users from minting or swapping WBTC if the BTC reserves are under collateralization.
The Swingby Skybridge
Furthermore, Swingby’s Skybridge uses threshold signature cryptography (“TSS”) and multi-party computing (“MPC”). It is to deliver a bridging protocol that enables users to move their assets from one blockchain to another. Essentially, instead of relying on a centralized business-based custodian, users can access a “technical custodian” that’s much harder to compromise. Ultimately this integration enables using Bitcoin as collateral on DeFi protocols running on Ethereum.
Moreover, with this integration of decentralized infrastructure run by highly reliable node operators, Skybridge users can feel very confident that they have an accurate, highly available, tamper-resistant, and transparent source of information regarding the minting of WBTC. The end result is WBTC becoming a more reliable form of collateral and payment throughout DeFi and other smart contract verticals.
Furthermore, Swingby Protocol is looking to follow this initial integration of Chainlink Proof of Reserve on the Ethereum mainnet. In addition to integrations on Avalanche, Polygon, and other blockchains. We’re also looking to secure assets beyond Bitcoin on Skybridge with the help of Chainlink Proof of Reserve.
“We consider Chainlink Proof of Reserve to be mission-critical decentralized infrastructure for Swingby’s Skybridge and it will play a key role in preventing users from minting new WBTC tokens or swapping them if the BTC reserves become unpegged from the WBTC token supply. Security is paramount when building a bridge across blockchains, and Chainlink’s battle-hardened and time-tested oracle network is the most reliable in the industry.” — Senga Yusaku, CEO of Swingby
ABOUT Swingby Protocol
Swingby is a protocol for moving effortlessly between blockchains without a central custodian. Swingby’s first product is Skybridge which provides trustless bridges between Bitcoin, Ethereum, Binance Smart Chain (BSC), and other blockchains. Skybridge executes fast token swaps using a secure network of Metanodes that are powered by multi-party computing and layer-2 technology. Each bridge exists as a proof-of-stake network. Ultimately, this enables users to move a 1-trillion dollar market cap digital asset like Bitcoin into the $100+ B DeFi ecosystem. It also supports the seamless flow of liquidity between blockchains.
Chainlink is the industry standard for building, accessing, and selling oracle services. Needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API. Leverage secure off-chain computations for enabling feature-rich applications.