Chainlink’s ‘PoR’, proof of reserve, enables access to “decentralized, aggregated, cryptographically secured, on-chain quantities” for the reserve asset and the stablecoin it supports. This allows for increased transparency for both on-chain and off-chain assets, which provides facts and figures on the level of collateral the stablecoin has.
This form of communication instils faith in consumers and users and also upholds the issuer to keep the reserves topped up as they are doing so ‘in public’.
Being able to validate and verify underlying assets, which are the reserve assets of a stablecoin, is something which is very important in this space. Having the proof and the ability to prove the reserves of an asset being backed is a great tool to increase the security and faith in what the stablecoin has.