Lendvest Becomes Latest Project to Integrate Chainlink’s CCIP Tech

Key takeaways

• Lendvest, a DeFi credit score solution, has announced that it will be integrated with Chainlink’s cross-chain interoperability protocol (CCIP) to connect Ethereum and Avalanche lending data
• Chainlink’s CCIP is rapidly becoming a favored cross-chain communications system thanks to the project’s proven track record for data security
• Lendvest aims to usher in greater DeFi transparency and help protocols to create more robust lending mechanisms by integrating with Chainlink’s CCIP

Lendvest has announced that it will integrate Chainlink’s cross-chain interoperability protocol (CCIP) as it prepares to launch a decentralized credit score system.

Lendvest, which is a data marketplace for DeFi borrowing and lending statistics, will introduce its credit score system in collaboration with Chainlink to “maintain the highest standard of security and reliability,” owing to Chainlink’s proven track record for providing secure Oracle solutions.

.@lendvest_io has integrated Chainlink #CCIP on @avax and @Ethereum to support its cross-chain credit score system.

Explore how CCIP is unlocking a new wave of DeFi innovation?https://t.co/FyFfrAMAA9

— Chainlink (@chainlink) August 10, 2023

Chainlink’s CCIP enables nodes from different blockchain ecosystems to communicate with each other without compromising security or decentralization. While blockchains typically operate as closed-loop ecosystems, Chainlink’s CCIP enables networks to share arbitrary data such as transaction information or historical user interactions.

Lendvest will use Chainlink’s CCIP to aggregate borrowing and lending data from both Ethereum and Avalanche. The platform will now be able to provide accurate credit scores for its users via a secure and decentralized blockchain protocol, which Lendvest hopes will contribute towards greater user transparency and more robust lending mechanisms for the DeFi sector.

As stated by Lendvest in a recent blog post: “Currently, there is no established credit score framework that provides material benefits to crypto users. Lendvest aggregates on-chain data to create decentralized data feeds to form a verifiable credit score for DeFi protocols.”

How is Chainlink’s CCIP helping to usher in a new era of cross-chain compatibility for Web3?

Chainlink’s industry-leading oracle solutions unlocked greater versatility for smart contracts and dApps within the Web3 ecosystem when the project first launched in 2019. Since then, the project has expanded its operations to include a variety of important solutions for projects in the decentralized web, including its cross-chain interoperability protocol (CCIP).

Chainlink’s CCIP is a highly secure cross-chain messaging protocol that enables disparate blockchains to interact. This can involve sending digital assets from one network to another, but the use cases are many. CCIP can enable dApps to automatically collect community votes from different blockchains, or even share historical blockchain information, as with Lendvest’s credit score solution.

Over time, Web3 is constantly being expanded with different layer-1 blockchains that have different consensus protocols. For the most part, these differences enable key performance enhancements. To use Ethereum and Avalanche as an example, Ethereum mainnet processes less than 30 transactions per second (TPS), while Avalanche’s TPS is 4500.

While these technical enhancements have produced a growing number of crypto assets and decentralized applications, it has posed a problem for crypto users. Each network operates as a closed-loop ecosystem for security purposes. In short, nodes are only designed to communicate with other nodes within their own blockchain, and not with other nodes in other blockchains.

Chainlink’s CCIP helps to solve this problem without sacrificing security or decentralization. It is fast becoming the leading solution for cross-chain communications, providing a convenient, plug-and-play interface that can be integrated with any partnered dApp.

Lendvest has remarked on CCIP’s widespread utility, highlighting its “time-tested security,” “seamless integration,” “scalable architecture,” and “future-proofed technology” as key reasons why it chose the Chainlink system for its decentralized credit score solution.

What is Chainlink?

Chainlink (LINK) is a decentralized oracle network that securely connects smart contracts to off-chain data sources. The ecosystem has been designed to solve the problem of data security in blockchain networks. By using a decentralized network of nodes that validate data feeds, Chainlink ensures the accuracy and integrity of smart contract data, while expanding dApp versatility by unlocking off-chain API connections.

LINK price prediction

The price of LINK is $7.52 at the time of writing, falling more than 5% in the past 48 hours. The CoinCodex price prediction algorithm expects LINK to recover from its recent retrace over the coming 30-day period, forecasting a 27.25% price increase before 9th September 2023. At this point, LINK would be valued at $9.67 per token.