Cross-Chain Collaterals To Be Realized By Long-Term Partnership With Cardano-Powered DeFi

On October 7, announced a long-term partnership with ($EGLD), a high-throughput layer 1 blockchain. According to the firm, with the signed deal, Ardana “will build the compatible bridge required for asset transfer between Cardano and Elrond.”

At this moment, Ardana is made up of two main components on its decentralised stablecoin hub:

  • A fully decentralised called “dUSD” that is verifiably backed by on-chain collateral and on their ADA or other supported assets.
  • “Danaswap”, a decentralised exchange devoted to trading stable multi-asset pools of securities. It is also described as highly capital efficient, enabling swaps with minimal slippage while providing low-risk return opportunities for liquidity providers.

A Partnership Which Will Benefit Both Platforms

, the bridge technology that it’s developing will allow the linking of the Cardano and Elrond ecosystems, allowing “token transfers between the Elrond mainnet and Cardano compatible networks, and later on, enable cross-chain capabilities.”

In the meantime, Elrond’s native token, eGold ($EGLD), will eventually be available as an asset on Cardano and will be utilised as collateral on Ardana to produce stablecoins.

, CEO of Elrond Network, said that the emerging study of collateralizing a stable currency on one chain with the native coin of another chain may be a great starting point for improved interoperability across two sophisticated global ecosystems that are anchored on performance and innovation.

Founder and CEO of Ardana Labs, , also stated how stablecoin would be a rare item with a limited supply that is currently in high demand.

“Taking on the job of making it available to Ardana clients and giving them other options for issuing dUSD that is backed by solid assets and implies less over-collateralization has aroused our attention,” he continued.

Elrond: Fast & Secure Blockchain Platform

Elrond Network is a completely new blockchain architecture that has been designed from the bottom up, to offer a 1,000-fold improvement in throughput and execution speed over current blockchain designs. Elrond provides two significant improvements to do this: a new mechanism and a secure algorithm, which together allow linear scalability while simultaneously offering a fast, efficient, and secure network consensus mechanism.

In an attempt to become the backbone of a permissionless, borderless, and globally accessible internet economy, the network can handle up to 10,000, with latency of only 5 seconds and low cost.

Read More:

We Want To Hear From You

What is your opinion on this development? Share your thoughts with us in the comments below.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store