Recently, Elrond opened its testnet to the public, in a giant contest called “Battle of Yield”. Today, Elrond announces that the e-Gold token (aka eGLD) will become one of the first crosschain assets to collateralize dUSD stablecoins issued on Cardano via the Ardana Stablecoin Hub.
An unlikely feat
Daniel Serb, the head of business development at Elrond, whose tagline is “Opening the doors to innovation” wrote a post on the Elrond Blog to announce a partnership between Ardana and Elrond.
We are delighted to announce that we have entered into a long-term collaboration with Ardana, the stablecoin hub on the Cardano blockchain.Daniel Serb, head of business development at Elrond
Ardana is building a DeFi infrastructure for the Cardano blockchain, which will enable the issuance of dUSD stablecoin backed by crypto assets. They also offer decentralized trading on their Danaswap platform, a classic DEX/AMM.
The collaboration between Ardana and Elrond aims to make EGLD one of the first non-native assets on Cardano that can be used as collateral to mine dUSD. This will be made possible by moving EGLD tokens between the Elrond Network and Cardano blockchains via a bi-directional bridge that will be developed by Ardana in collaboration with Elrond.
In the long term, Elrond envisions the possibility of linking other assets, such as Cardano’s native ADA token, or other tokens issued on both blockchains. This will allow them to reciprocally leverage their value in the DeFi opportunities available on both networks.
When the CEOs speak up
Elrond and Cardano seem to have different visions, but let many common points shine through. We had moreover, received Beniamin Mincu, the founder of the project in a long video interview : How Elrond wants to change the world?
Elrond is a new blockchain architecture, designed from scratch, to bring an improvement in throughput and execution speed over all its competitors. To achieve this, Elrond introduces two key innovations: a new mechanism and a Secure Proof of Stake (sPoS) algorithm, enabling scalability with a fast, efficient and secure consensus mechanism. As a result, Elrond can process up to 10,000 transactions per second (TPS), with a latency of 5 seconds at a negligible cost. Elrond aims to become a benchmark for the global decentralized economy.
“This creative exploration of backing a stablecoin on one blockchain with the native corner of another blockchain can be a good starting point for interoperability between two progressive global ecosystems that are rooted in performance and innovation.”Beniamin Mincu, CEO of Elrond Network
Ardana is the Cardano hub whose role will be to keep any Cardano economy stable. Ardana offers the first stablecoin on Cardano (ADA). The stablecoin will allow borrowers to leverage their ADA or other supported assets. The DEX Danaswap is a Dapp enabling swaps with minimal fees while providing low-risk return opportunities for liquidity providers.
“eGold is a rare asset with a capped offering that is in high demand right now. We are excited to take on the challenge of making it available to Ardana users and provide them with more options to issue dUSDs that are backed by strong assets that involve less overcollateralization.”Ryan Matovu, CEO and founder of Ardana
Elrond never ceases to amaze with its all-consuming ambitions. Although the project has been repeatedly criticized for too much predictive marketing, the growing number of signed partnerships is impressive. We have to admit that the startup is constantly proposing novelty and breaking the established codes. This summer, for example, Elrond announced a partnership with the mega electronic music festival Untold, to accept payments in eGold.