The engineering teams behind Elrond and Ardana have agreed to a long-term strategic partnership. EGLD, Elrond’s native token, will be one of the first cross-chain assets to collateralize stablecoins on Cardano’s platform.
This will allow more cross-chain transactions, and added flexibility to both blockchain systems.
Ardana will provide the infrastructure needed to connect Cardano and Elrond’s assets. By connecting multiple stablecoins, more liquidity will be available in the overall ecosystem.
This would enable token transfers between the Elrond mainnet and Cardano compatible blockchains, as well as cross-chain smart contract capability, by connecting the two ecosystems and supporting integrations between projects on both blockchains.
Elrond’s Native Token eGold (EGLD) NOW Available Through Ardana
From now on it will be feasible to transfer assets from Cardano to Elrond while maintaining their value by allowing much faster transfers with reduced fees.
Elrond’s native EGLD token will continue to be available as a Cardano asset but from now on will also serve as collateral for minting stablecoins on Ardana.
Aligned with current environmental concerns, Elrond is a carbon-neutral Layer 1 blockchain network that is scalable and affordable.
The smart contracts execution platform, dedicated to run fintech, DeFi, and IoT operations, is capable of executing above 100,000 TPSs, with only 6s latency, with only $0.001 tx in costs.
With a capped supply and declining issuance the Elrond economic model increases adoption through scarcity.
The crypto currency is called eGold (EGLD) to represent a digital store of wealth for the next billion users, and its intrinsic storage value features make it a great collateralization asset.
“This creative exploration of collateralizing a stable coin on one chain with the native coin of another can be a great starting point for greater interoperability between two progressive global ecosystems that are anchored in performance and innovation.” said Beniamin Mincu, Elrond Network CEO.
The Ardana team is very excited to join efforts with Elrond’s developers to build a bridge for our users to connect to the Elrond network. Expect to hear more exciting news coming out of this nouvel relationship as long as it progresses in the short time.
Elrond is a blockchain architecture built from the ground up to deliver a 1,000-fold increase in throughput and execution speed. With these advantages, it is finding many use cases in the market today.
It accomplishes this by introducing two major innovations: a unique Adaptive State Sharding mechanism and a Secure Proof of Stake (PoS) algorithm.
“eGold is a scarce asset with capped supply that is very in demand right now. We’re excited to take on the challenge of making it available to the Ardana users and offer them more options to issue dUSD that is underpinned by strong assets that imply lower overcollateralization.” said Ryan Matovu, Ardana CEO and Founder.
These two combined enable linear scaling while also providing a quick, efficient, and secure consensus process.
Elrond is seeking to become the backbone of a permissionless, borderless, globally accessible internet economy by processing above 10,000 transactions per second (TPS) with 5-second latency and at an accessible cost.
Ardana, acting as Cardano’s stablecoin hub, brings the DeFi primitives required to start and operate any economy to the Cardano platform.
This allows the use of tokens that are based on fiat currencies, and won’t have the kind of price movements that cryptos do.
Ardana provides the decentralized stable-asset DEX and an on-chain asset-backed stablecoin. The stablecoin is reportedly backed by an excess of on-chain collateral, allowing borrowers to use their ADA or other supported assets as collateral.
The DEX, a highly efficient capital exchange, allows swaps with minimal slippage and fees while offering liquidity providers more opportunities in low-risk yield.
The post Ardana Welcomes EGLD Native Token As First Cross-Chain Collateral For Cardano Stablecoins appeared first on Blockonomi.