EGLD To Become One Of The First Cross-Chain Assets To Collateralize Stablecoins Issued On Cardano Via The Ardana Stablecoin Hub
We are excited to announce that we have started a long term collaboration with Ardana, the stablecoin hub on the Cardano blockchain.
Ardana is building DeFi infrastructure for the Cardano blockchain, that will enable the issuance of the crypto-backed dUSD stablecoin and decentralized trading on their Danaswap DEX AMM platform.
Our collaboration seeks to make EGLD one of the first non-native assets on Cardano that can be used as collateral for dUSD minting. This will be made possible by moving EGLD tokens between the Elrond Network and Cardano blockchains via a two way bridge that will be developed by Ardana in collaboration with Elrond.
In the long term we are exploring the possibility of bridging other assets, such as the Cardano-native ADA token, or other tokens issued on the two blockchains. This will allow their value to be leveraged in DeFi opportunities available on both networks.
“This creative exploration of collateralizing a stable coin on one chain with the native coin of another can be a good starting point for interoperability between two progressive global ecosystems that are anchored in performance and innovation.” said Beniamin Mincu, Elrond Network CEO.
“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.
Elrond is a new blockchain architecture, designed from scratch to bring a 1,000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 10,000 transactions per second (TPS), with 5-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
Ardana is Cardano's stablecoin hub which will bring the necessary DeFi primitives needed to bootstrap & maintain any economy to Cardano. Ardana offers an on-chain asset-backed stablecoin and a decentralized stable-asset DEX. The stablecoin is verifiably backed by an excess of on-chain collateral and will enable borrowers to take leverage on their ADA or other supported assets. The DEX is a highly capital efficient exchange enabling swaps with minimal slippage & fees while providing low-risk yield opportunities to liquidity providers.
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