Web3 services platform Chainlink has announced that the Cross-Chain Interoperability Protocol (CCIP) has entered the Mainnet Early Access phase. CCIP is in Early Access on the Ethereum, Optimism, Polygon and  Avalanche blockchains, and it can be used by DeFi protocols to power cross-chain smart contracts such as Synthetix, which is live on CCIP mainnet.

The system also supports Aave, as BGD Labs is currently integrating CCIP on the mainnet into the protocol. CCIP is scheduled to become available to all developers across five testnets, namely Arbitrum Goerli, Avalanche Fuji, Ethereum Sepolia, Optimism Goerli, and Polygon Mumbai on 20 July 2023. Synthetix represents a DeFi protocol that provides a liquidity layer for an ecosystem of on-chain derivatives and financial instruments.

One of the protocol’s most recent updates is the Synth Teleporter, which offers users a streamlined method for transferring Synth liquidity between chains. To be specific, this feature is capable of burning the protocol's unit of account (sUSD) on the source chain before minting an equivalent amount of sUSD on the destination chain. Chainlink CCIP is used by the Synth Teleporter to burn and mint tokens across chains in a safe and secure manner.

The system ensures the promotion of higher capital efficiency without the need for liquidity pools. As for Aave, it represents a lending protocol that allows users to borrow and lend assets on-chain. BGD Labs, which is a Web3 development initiative, is integrating Chainlink CCIP into the Aave Protocol to prepare its cross-chain governance system for the future.

The continued integration of more chains into CCIP will give AAVE the ability to launch itself on more chains and conduct key operations like governance through a highly secure solution. According to the company press release, CCIP is a secure, reliable, and user-friendly interoperability protocol that can be used to build cross-chain applications and services. It’s worth noting that CCIP offers Simplified Token Transfers that allow protocols to quickly start transferring tokens across chains using audited token pool contracts in their control without having to rely on custom code.

More information about Chainlink Chainlink is a decentralised oracle network that works with developers to help them build Web3 applications with seamless access to real-world data and off-chain computation across any blockchain. In September 2022, Chainlink worked with SWIFT to create a proof-of-concept designed to allow the international bank cooperative to transfer cryptocurrencies across most blockchains. The collaborative proof-of-concept would allow SWIFT to instruct token transfers across nearly every blockchain environment.

Chainlink added that this would allow financial institutions to become blockchain-capable without confronting high upfront costs and development challenges. .