Avalanche has officially integrated Chaos Labs’ Proof-of-Reserves, bringing on-chain verification to assets powering the layer-1 blockchain platform’s decentralized finance ecosystem. In an announcement on June 16, Chaos Labs said Avalanche ( AVAX ) will leverage the Proof-of-Reserves system to provide transparent verification for bridged assets in the Avalanche DeFi stack. This includes ecosystem top coins for cross-chain liquidity, such as Avalanche Bridged Bitcoin (BTC.b) and bridged Wrapped Ethereum (WETH.e) on Avalanche. Beyond cross-chain liquidity, bridged assets like BTC.b and WETH.e unlock collateral utility. They also enable deeper liquidity for decentralized finance features like trading, lending, and structured products. Chaos Labs’ Proof-of-Reserves adds an on-chain system that allows users to monitor and verify the reserves backing these bridged assets. With Chaos Labs’ Proof-of-Reserves architecture, Avalanche can now track reserve data across canonical bridges and custodial solutions. The on-chain validation of attestations enables public monitoring of the Bitcoin and Ethereum that back the BTC.b and WETH.e supplies. Users can verify whether bridged assets on Avalanche have full reserves on their native chains, Bitcoin on the Bitcoin network and Ethereum on the Ethereum network. Importantly, DeFi users on Avalanche, as well as developers and protocols, no longer have to rely on third-party providers to verify tokenized or collateralized assets. You might also like: Avalanche gains momentum as monthly transactions surge 326% but this chart signals a cold front Chaos Labs is backed by top venture capital firms, including PayPal Ventures, Coinbase, Lightspeed, OpenAI, and Haun Ventures. The platform provides technology for risk management systems, oracles, and artificial intelligence models. Together, these tools and solutions help secure billions of dollars in value across the financial market. In September 2024, the Chaos Labs team unveiled Edge , a decentralized Oracle network protocol targeted at bringing a blockchain solution to financial risk and optimization. Edge is aimed at the future of DeFi. Jupiter and recently Ethena are some of the protocols to integrate Edge. Chaos Labs closed a $55 million Series A funding round in August 2024, led by Haun Ventures. You might also like: JuCoin launches new feature that turns trading losses into computing power
