Gemini to Sponsor a Chainlink Proof of Reserve Feed For On-Chain Audits of EFIL Collateralization

By September 23, 2021Ethereum
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SAN FRANCISCO, Sept. 23, 2021 /PRNewswire/ -- We are excited to announce that as part of Gemini's launch of Wrapped Filecoin (EFIL), Gemini will sponsor a Proof of Reserve data feed powered by Chainlink's industry-leading oracle network. The Chainlink Proof of Reserve (PoR) implementation will allow DeFi platforms to audit EFIL collateralization directly on-chain before approving EFIL to be used in various functions, such as collateral for a loan. By doing so, EFIL becomes an even more trusted asset within the Ethereum DeFi ecosystem, as users have additional proof of its 1-to-1 collateralization with FIL held by Gemini Custody™.

Gemini to Sponsor a Chainlink Proof of Reserve Feed For On-Chain Audits of EFIL Collateralization
Gemini to Sponsor a Chainlink Proof of Reserve Feed For On-Chain Audits of EFIL Collateralization

Filecoin is the native token of the Filecoin Network, a decentralized data-sharing platform. FIL is used to purchase storage space on, and retrieve files (i.e., data) from, the Filecoin Network. Miners receive FIL for storing files and verify their services via cryptographic proofs. This decentralized model offers a compelling alternative to existing centralized cloud storage offerings.

Gemini launched the wrapped EFIL token to bridge Filecoin's native asset to the largest smart contract ecosystem, enabling users to make payments to Filecoin miners or utilize it within Ethereum DeFi platforms. Users in the United States, UK, and Singapore can simply convert their FIL 1:1 into EFIL through the Gemini Mobile App and Website using the convert button — and EFIL can be converted back into FIL using the same process. Once EFIL is in your Gemini wallet, withdraw it to any Ethereum address you specify to lend, borrow, pay, or stake your EFIL.

The wrapping functionality is facilitated by an open-source Ethereum smart contract that wraps FIL and converts it into an ERC-20 token — EFIL. The EFIL smart contract mints and burns EFIL, and ensures that the value of available EFIL is equal to the amount of FIL held in Gemini Custody, our institutional-grade storage system.

While Gemini Custody has robust security, compliance, and operational protocols, they are sponsoring a Chainlink Proof of Reserve (PoR) data feed to further enhance those assurances, specifically for DeFi platforms incorporating EFIL. The PoR data feed uses a Chainlink-powered decentralized oracle network to consistently check the balances of Gemini's custody wallet for FIL. Whenever a deviation is spotted beyond a predefined threshold (e.g. 1%), Chainlink oracles will push an on-chain update to a specific reference contract that stores the EFIL reserve balance.

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