Avalanche Boosts DeFi Trust with Chaos Labs PoR System

• Avalanche now uses Chaos Labs’ Proof of Reserves for on-chain verification of bridged assets like BTC.b and WETH.e.
• This integration boosts transparency and helps DeFi users verify if bridged tokens are truly backed by reserves.

Recently, Avalanche has integrated Chaos Labs’ Proof of Reserves (PoR) system into their network. They want to prove that assets like BTC.b and WETH.e used in DeFi do have reserves that can be accounted for.

For users who are involved in lending protocols or DEXs on Avalanche, this is quite important. The reason is, so far there have been many concerns about the transparency and security of assets originating from the bridge. If the reserves behind the token turn out to be lacking or even non-existent, you can imagine how chaotic the impact will be.

With Chaos Labs’ PoR, all of that reserve data can be viewed directly—directly from the blockchain, without having to trust sweet promises from third parties.

Bridged assets like BTC.b and WETH.e are critical to Avalanche DeFi. But trust in these tokens depends on transparency.

That’s why Avalanche has integrated @chaos_labs Proof of Reserves, bringing on-chain verification of asset backing to the network. pic.twitter.com/c8GofvyeMA

— Avalanche🔺 (@avax) June 18, 2025

This system works quite simply but effectively. Chaos Labs monitors the reserve source 24/7, then sends the data to Avalanche’s smart contract. The results can be accessed by anyone, at any time. Not only that, they also provide a public dashboard that shows the collateral ratio and data history transparently. It’s like checking your account balance, but for DeFi protocols.

Avalanche Expands Beyond DeFi With Real-World Use Cases

However, PoR is not the only Avalanche project in recent times. On the other hand, the network is also increasingly active outside the DeFi ecosystem. CNF previously reported that Bergen County will digitize more than 370,000 property documents with Avalanche. The $240 billion tokenization project is expected to cut bureaucracy and make access to property data much faster.

Furthermore, Avalanche is also partnering with Filecoin to connect off-chain data storage with on-chain smart contracts. The project started in late May and allows developers to store data with verifiable evidence. Imagine if you were building a DeFi application, but the data was really heavy. Well, now you can store it off-chain, but still have an “entry ticket” that can be verified at any time.

And don’t forget about FIFA. Yes, FIFA—the world’s largest football organization—has decided to migrate their NFT platform, FIFA Collect, to the Avalanche network. This isn’t just about trading digital cards, it’s also a sign that Avalanche is starting to enter the scene of global fan engagement. While users will have to switch wallets to participate, it’s still a significant moment for Avalanche in terms of exposure.

Meanwhile, the AVAX token itself is not doing so well. At the time of writing, AVAX was swapping hands at about $18.04—down 2.49% in the last 24 hours and 13.71% in the last 7 days.

But, as is the case in crypto, prices can go up or down overnight. What’s more interesting to watch now are the steps Avalanche is taking to strengthen its technical foundation and ecosystem trust.