- The integration of Chainlink CCIP with Mountain Protocol is part of a broader trend to expand cross-chain functionality and enhance the security of decentralized ecosystems.
- Chainlink’s CCIP integration with Mountain Protocol is expected to boost USDM’s interoperability.
Mountain Protocol, the issuer of the stablecoin USDM, has announced its integration with Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This partnership will enhance the security and efficiency of token transfers across various blockchain networks, including Ethereum, Arbitrum, and Polygon POS.
According to a recent press release shared by Mountain Protocol, CCIP will allow for seamless cross-chain transactions without the need to physically transfer tokens between chains. Instead, it will employ a burn-and-mint mechanism to maintain token consistency across networks.
Mountain Protocol launches USDM cross-chain native bridging with @chainlink's CCIP, simplifying transfers and unifying liquidity across multiple blockchains while ensuring security.
You can now move your USDM across chains via https://t.co/KBqYH5C2dx or via @xswap_link's app.… pic.twitter.com/X1Kx0ctp6k
— Mountain Protocol (@MountainUSDM) October 17, 2024
The process will involve burning tokens on the originating blockchain, which triggers a secure event picked up by Chainlink’s independent relayers. These relayers then transmit the event to the destination blockchain where new tokens are minted.
“This process starts by burning the required amount of USDM… which triggers an event that’s picked up by CCIP Relayers and transmitted cross-chain,” the press release explained. Once the event reaches the destination blockchain, the minting of new USDM tokens is initiated.
This collaboration with Chainlink is expected to significantly enhance the interoperability of Mountain Protocol’s USDM stablecoin. Moreover, it will also provide users with a more secure and efficient way to transfer value between different blockchain ecosystems. Chainlink CCIP has already gained traction in the industry with several recent integrations to increase cross-chain functionality and user security.
Chainlink (LINK) Price Remains Stagnant
Despite Chainlink’s recent focus on expanding CCIP, the performance of its native token, LINK, has remained relatively stagnant. Chainlink bagged multiple high-profile integrations, such as Sonic in September and Sony’s Soneium shortly after. Despite such success, the LINK price has shown a bearish trend.
Analysts have noted that the token’s performance has been underwhelming, with the potential for a “death cross,” which signals further declines. The current market sentiment indicates that the token’s best chance for recovery might rely on increased accumulation by large investors or whales. Thus, the short-term market reactions to these new integrations may not have been of much use.
However, after the Mountain Protocol partnership, LINK price witnessed a significant boost. At press time, the Chainlink price soared 2.61% to $11.41 on Friday, October 18. Moreover, it hit a high of $11.46, marking a major rebound from the intraday low of $10.87. As per the CNF report, the LINK is gearing up for a major rally to $20.
Meanwhile, Chainlink has continued to forge ahead with its CCIP integrations, with the Ronin network being the latest to integrate CCIP, per the CNF report. The latest integration with Mountain Protocol is one of several key developments. As part of this initiative, Chainlink’s decentralized oracle network will ensure that cross-chain events are securely transmitted and processed with accuracy.
Meanwhile, Mountain Protocol’s USDM stablecoin has been gaining visibility within the crypto ecosystem. Recently, Ethena selected USDM as one of the four assets in its $46.6 million Real World Asset (RWA) Reserve Fund.
