Cardano-powered DeFi Ardana has introduced a long-term partnership with high-throughput layer 1 blockchain Elrond ($EGLD), as the results of which Ardana “will construct the bridge infrastructure required for asset switch between Cardano and Elrond.”
Ardana is “a decentralized stablecoin hub which can carry the required DeFi primitives wanted to bootstrap & keep any economic system to Cardano”.
Ardana at present has two principal elements:
- A completely decentralized dollar-pegged stablecoin named dUSD “verifiably backed by on-chain collateral” that permits “debtors to take leverage on their ADA or different supported belongings.”
- An automatic market maker (AMM) decentralized change named Danaswap for steady multi-asset swimming pools. Danaswap is “extremely capital environment friendly enabling swaps with minimal slippage whereas offering low-risk yield alternatives for liquidity suppliers.”
Based on a blog post by Ardana printed on October 7, the bridge infrastructure it’s constructing will allow connecting the ecosystems of Cardano and Elrond, thereby “enabling token transfers between the Elrond mainnet and Cardano suitable chains, and afterward allow cross-chain sensible contract performance.” Which means that Elrond’s native token eGold ($EGLD) will “finally be accessible as an asset on Cardano and might be usable as collateral on Ardana to mint stablecoins.”
Beniamin Mincu, the CEO of Elrond Community, acknowledged:
“This inventive exploration of collateralizing a steady coin on one chain with the native coin of one other could be a nice place to begin for higher interoperability between two progressive world ecosystems which are anchored in efficiency and innovation.“
And Ryan Matovu, Founder and CEO of Ardana Labs, had this to say:
“eGold is a scarce asset with capped provide that could be very in demand proper now. We’re excited to tackle the problem of constructing it accessible to the Ardana customers and provide them extra choices to challenge dUSD that’s underpinned by sturdy belongings that suggest decrease overcollateralization.“
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