Cross-Chain Collaterals To Be Realized By Long-Term Partnership With Cardano-Powered DeFi
On October 7, Ardana announced a long-term partnership with Elrond ($EGLD), a high-throughput layer 1 blockchain. According to the firm, with the signed deal, Ardana “will build the compatible bridge required for asset transfer between Cardano and Elrond.”
At this moment, Ardana is made up of two main components on its decentralised stablecoin hub:
- A fully decentralised dollar-pegged stablecoin called “dUSD” that is verifiably backed by on-chain collateral and allows borrowers to take leverage on their ADA or other supported assets.
- “Danaswap”, a decentralised automated market maker exchange devoted to trading stable multi-asset pools of securities. It is also described as highly capital efficient, enabling swaps with minimal slippage while providing low-risk return opportunities for liquidity providers.
A Partnership Which Will Benefit Both Platforms
According to Ardana, the bridge technology that it’s developing will allow the linking of the Cardano and Elrond ecosystems, allowing “token transfers between the Elrond mainnet and Cardano compatible networks, and later on, enable cross-chain smart contract capabilities.”
In the meantime, Elrond’s native token, eGold ($EGLD), will eventually be available as an asset on Cardano and will be utilised as collateral on Ardana to produce stablecoins.
Beniamin Mincu, 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, Ryan Matovu, 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 Adaptive State Sharding mechanism and a secure Proof of Stake (PoS) 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 transactions per second (TPS), with latency of only 5 seconds and low cost.
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