Fluent to Enhance Stablecoin Protocol Security via Chainlink Proof of Reserve Integration

Fluent Finance
4 min readSep 9, 2022

SALT LAKE CITY — We’re excited to announce that we will integrate Chainlink Proof of Reserve into our Fluent Protocol infrastructure, which offers fully collateralized stablecoins, minted and burned by a federation of regulated financial institutions.

Fluent will utilize Chainlink’s industry-leading decentralized oracle network to reliably monitor reserve assets using automated verification based on cryptographic truth. Through this technology, Fluent can provide attestations on the fiat and asset reserve pools backing their flagship stablecoin, US+.

“Our integration of Chainlink Proof of Reserve is going to play a key role in enhancing the security of Fluent Protocol,” says Bradley Allgood, Co-Founder and CEO of Fluent. “Automated on-chain verification helps ensure that every US+ stablecoin is fully backed 1:1 by U.S. dollars.

“This integration ultimately enables our banks to prove they have sufficient liquidity to meet redemptions in an efficient and transparent manner. We’re confident that Chainlink technology will help Fluent achieve our goal of building the world’s most trusted stablecoin.”

Creating Multiple Fiat Gateways with Participating Institutions

Fluent Protocol is a financial network that seamlessly bridges traditional finance and digital assets. To eliminate single points of failure, Fluent utilizes the Fluent Federation, an organization of independent banks, which provides users with more fiat on and off ramps. As a condition of Federation Membership, Member Banks must guarantee a 1:1 exchange with U.S. dollars and Fluent’s US+ stablecoin.

To ensure that the circulating supply of US+ stablecoins accurately reflects the supply of U.S. dollars in reserve, all minting and burning must be based on U.S. dollar receipts, as well as reserve and collateral requirements specific to each Member Bank.

“We’re pleased to support Fluent Finance in their integration of Chainlink Proof of Reserve,” says Tomasz Wojewoda, Head of Global Sales at Chainlink Labs. “By leveraging Chainlink Proof of Reserve, Member Banks will be able to attest to the value of fiat and other securities backing the US+ stablecoin.”

In addition to Member Bank requirements, Fluent must constantly monitor the size, performance, and overall risk of asset reserves to make sure they meet protocol requirements for cash liquidity. Reliable attestations of these asset reserves are critical for timely user redemptions, and all of these verifications can now be automated using Chainlink Proof of Reserve.

Enhancing Security and Transparency with Chainlink Proof of Reserve

Fluent requires a mechanism to attest to the value of fiat and other assets backing US+. Instead of relying on manual and infrequent attestations or audits, Fluent uses Chainlink Proof of Reserve to verify that each Federation Member Bank can meet its fiat obligations to US+ holders in a timely, automated, and highly reliable manner.

By publishing reserve data on-chain with Chainlink Proof of Reserve, Fluent Protocol can verify that Member Banks have sufficient liquidity before they are permitted to transfer collateral to a less-liquid yet higher-yield asset. The protocol is able to verify when a Member Bank invests or divests in these assets. Furthermore, Member Banks can make public attestations that fiat deposits were received or sent.

Chainlink Proof of Reserve boasts a bevy of critical features, all of which will benefit Fluent users:

  • Automated On-Chain Attestations: By keeping an up-to-date reference contract, on-chain automated smart contracts can verify US+ collateralization, removing the need to conduct manual audits.
  • High-Quality Data: Through customizable external adapters, Chainlink can source data from premium data providers who are financially incentivized to constantly make highly accurate data as available as possible.
  • Decentralized: Chainlink Proof of Reserve Feeds are decentralized at the data source and oracle node levels, eliminating central points of failure in the sourcing and delivery of external data to Fluent Protocol.
  • Transparent: Chainlink Proof of Reserve Feeds can be monitored by anyone in real-time, allowing consumers to independently verify asset collateralization.

“Chainlink is the most time-tested and historically reliable oracle network in the blockchain industry, currently securing tens of billions of dollars for top DeFi projects,” said Allgood. “With Fluent’s integration of Chainlink Proof of Reserve, our users will be able to trust in an accurate, highly available and transparent record of the reserves backing their US+.

“The natural result of this integration with Fluent Protocol is a more robust US+, a stablecoin asset that will become a more reliable form of collateral and payment across Web3.”

About Chainlink

Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications.

Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, offering global enterprises and leading data providers a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.

About Fluent

Fluent Finance is a product and technology company operating an open stablecoin protocol and a private settlement network called F-Net.

At the center of the Fluent Protocol is the US+ stablecoin, an auditable asset 100% backed by cash and equivalents. Operated by a Federation of Member Banks and pegged one-to-one with U.S. dollars, US+ is compliant with all current financial regulations and future-proofed to accommodate impending legislative actions.

For more information, please visit https://fluent.finance




Fluent Finance

We’re building institutional deposit token infrastructure so banks, governments, and investors can transact better, faster, cheaper, and more reliably