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Lendvest Integrates Chainlink CCIP To Enable Cross-Chain DeFi Credit Score System

Last month, industry-leading web3 services platform Chainlink officially launched its Cross-Chain Interoperability Protocol (CCIP) on Ethereum, Optimism, Polygon, and Avalanche mainnets. Top DeFi protocols Synthetix and Aave were among the first to integrate CCIP to power cross-chain smart contracts, while web3 developers gained access to CCIP on Arbitrum Goerli, Avalanche Fuji, Ethereum Sepolia, Optimism Goerli, and Polygon Mumbai testnets.

This week, decentralized credit scoring protocol Lendvest announced its integration of CCIP to enable low-cost transmission of credit score messages between the Ethereum and Avalanche blockchains. Lendvest ultimately aims to leverage CCIP’s cross-chain interoperability solution to help build and secure a global credit score system for the multi-chain DeFi economy. 

Traditional finance uses credit scores to assess the risk of individual borrowers based on factors like loan and payment history. Without a credit score equivalent, DeFi platforms rely on over-collateralization and face increased liquidation risk and reduced capital efficiency. Lendvest’s credit system would allow decentralized lending platforms to algorithmically gauge the risk profile of individual users, resulting in higher risk-adjusted returns and optimal user terms.

Recently, Lendvest joined the Chainlink BUILD program to accelerate development of its decentralized credit score framework through enhanced access to key infrastructure like Chainlink Functions, which retrieves data from any API, and CCIP, which transmits data and messaging between blockchains, allowing Lendvest users to request credit scores on one chain and relay the results to another chain.

CCIP is secured by the same decentralized oracle network that has enabled more than $8 trillion in transaction value throughout the decentralized economy. For thousands of projects that have already integrated Chainlink services such as Price Feeds, VRF, and Automation, CCIP is ideally suited to facilitate cross-chain communication.

“We’re excited to integrate Chainlink CCIP to unlock a seamless cross-chain credit score system for DeFi,” said Lendvest co-founder Joshua Gottlieb in an official announcement. “Since CCIP is built on the same foundation as other Chainlink services, such as Chainlink Price Feeds, integrating with DeFi lending protocols will enhance these protocols without introducing any additional trust assumptions.”

To learn more about Lendvest visit their website, Twitter, and Telegram.

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