Fuse Gold, which happens to be a tokenized gold protocol supported by LBMA-approved gold, happens to be kept in vaults all over the United Kingdom. At present, it has decided to incorporate Chainlink Proof of Reserve (PoR) to secure the FUSEG minting function, which is duly carried out on the BNB Chain.
In this scenario, the Proof of Reserve is utilized to ascertain that the value of the gold reserves kept off-chain remains the same or more than the value of the FUSEG tokens on-chain. Through this relevant process, it will be possible to avert endless mint attacks which land up, causing the overall value of the minted tokens to reach above the value of the real-world gold reserves. This entire scenario will provide the user further guarantees that the FUSEG tokens always remain supported and secure.
Fuse Gold’s ultimate aim and intention lie in the tokenization of real-time assets. They also make it their business to fully ensure that their transference all over the Web3 ecosystem remains smooth. In this scenario, their decentralized exchange will put the users in a position to purchase and sell the tokenized gold (FUSEG) together with their other digital assets. Further, with the tokenized gold becoming tradable on-chain, all of the users will find themselves in the fortunate situation of benefitting from the gold’s accepted store-of-value, along with the capability of Web3’s quick settlement, also the interoperability function, and last but not least, its flexibility.
Where the Chainlink Proof of Reserve is concerned, it is indeed very necessary in the case of Web3 protocols, which bring real-time assets on-chain. There are seemingly many benefits, but highlighting some becomes the need of the hour. In the case of automated on-chain audits, it helps to keep an updated reference contract.
This, in turn, helps in smart contracts becoming automated, and on-chain verifications can be done of an asset’s collateralization, which sets aside the requirement of carrying out audits manually. Where advanced quality data is concerned. With the utilization of customizable External adapters, Chainlink is able to source the data being received from prime data providers. The Chainlink Proof of Reserve Feed happens to be decentralized at the level of the source of the data, as well as the oracle node. This helps to do away with the central points of failure, where the source and delivery of the external data to Fuse Gold is concerned.
Another important factor happens to be the issue of clarity. In this scenario, Chainlink Proof of Reserve Feeds is able to be tracked by anyone in real-time, which provides the opportunity for the user to individually ascertain asset collateralization.