DFX Finance Integrates Chainlink CCIP To Unlock Cross-Chain Interoperability Across L2 Networks

We’re excited to announce that DFX Finance has integrated Chainlink CCIP — the industry standard for secure cross-chain interoperability — across the Polygon and Arbitrum mainnets. We’re leveraging CCIP’s Simplified Token Transfer capabilities to facilitate cross-chain interoperability between L2s, enabling safe and efficient transfers across multiple chains. ⛓

We selected CCIP as our preferred interoperability solution because Chainlink has the most proven track record of maintaining the highest standard of security and reliability in the Web3 industry. Furthermore, CCIP is backed by the Risk Management Network — a separate, independent network that continually monitors and verifies cross-chain operations for suspicious activity. This additional layer of security is particularly important given historical industry exploits and the billions in user funds lost due to insecure and unreliable cross-chain infrastructure. 😢

DFX Finance will be able to reduce fragmentation of liquidity across multiple networks and enable users to move between chains seamlessly. Previously moving across L2 chains would require bridging and unbridging through Ethereum mainnet, but CCIP will bypass the need to transfer the tokens back to Ethereum mainnet and allow our users to go directly from one chain to another.

In order to help secure our cross-chain interoperability protocol, we needed access to a highly secure and reliable interoperability solution. After reviewing various solutions, we integrated with Chainlinks CCIP because it provides a multitude of important benefits and features, such as:

• Time-tested security and reliability — CCIP’s consensus and interoperability layer is powered by Chainlinks decentralized oracle networks, which have already secured tens of billions of dollars for smart contracts and enabled over $8 trillion in on-chain transactional value. CCIP also features additional layers of protection and reliability via the Risk Management Network and Smart Execution.
• Simplified Token Transfers — CCIP features a plug-n-play solution consisting of audited token pool contracts that handle the complexity of burning and minting or locking and minting tokens across chains. CCIP’s Simplified Token Transfers also have additional security features like Rate Limits, and enable ecosystem partners to easily build new capabilities around a supported token via a single CCIP interface.
• Flexible and programmable — CCIP messages are programmable, meaning token transfers and arbitrary data transfers can be one atomic transaction. This enables instructions to be passed in the data payload regarding what to do with the tokens once they arrive at the destination chain. CCIP also supports multiple token handling mechanisms on the source and destination chains (e.g., burn and mint, and lock and mint) to open up a wider range of use cases.
• Future-proof — CCIP is built to support continuous updates, such as the integration of new blockchains, the introduction of advanced functionalities, and the addition of other defense-in-depth approaches to security. Thus, integrating CCIP eliminates future switching costs should new cross-chain functionalities be required.

DFX Finance has been working closely with Chainlink since inception by leveraging Chainlink’s Price Feeds for real-time forex pricing within the protocol’s bonding curve. It is a natural evolution of the relationship between DFX Finance and Chainlink for the DFX protocol to be using CCIP for its cross chain needs. 🤝

About Chainlink

Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $8.8 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.

About DFX Finance

DFX is a decentralized foreign exchange (FX) protocol that facilitates the seamless exchange of fiat-backed stablecoins denominated in a growing number of currencies. The current reliance on USD-pegged stablecoins creates undue economic friction for those in other parts of the world, and DFX is here to change that.✨

Using a hyper-efficient AMM, optimized for low volatility trading, DFX provides FX swaps with rates that will beat any bank, money changer, or FX platform.💱

We’re super excited to build the FX infrastructure for DeFi and would love to hear more of your ideas and comments on how we can make DFX better together!

DFX Finance. Stablecoins for the world.🌐

Learn more about DFX Finance by visiting dfx.finance or reading the developer documentation at docs.dfx.finance.