Cardano-based Stablecoin Platform Ardana Adds Elrond’s EGLD Native Token As First Cross-Chain Collateral Asset
Cardano’s stablecoin hub Ardana has inked a partnership with scalable blockchain architecture platform Elrond to integrate the latter’s native EGLD coin as one of the first cross-chain assets to collateralize stablecoins on Ardana.
EGLD to Be Available on Ardana
In an announcement made today, Cardano-based stablecoin-focused DeFi platform Ardana stated it had inked a long-term strategic partnership with highly scalable blockchain platform Elrond to add EGLD as one of the first cross-chain digital assets to collateralize stablecoins.
Ardana is committed to developing the necessary infrastructure to enable the transfer of digital assets between Cardano and Elrond, the announcement reads.
By bridging the gap between Cardano and Elrond ecosystems, Ardana will allow seamless of projects building on both the smart contract platforms. This would include enabling token transfers between the Elrond mainnet and Cardano compatible chains, followed by cross-chain smart contract functionality.
Further, the integration also makes it possible to move assets from Cardano to Elrond while preserving their value by enabling high-speed and low fees transfers. Eventually, EGLD will be available as an asset on Cardano and will find utility as collateral to mint stablecoins on Ardana.
For the uninitiated, Elrond is a scalable, low-fees, and carbon-negative Layer 1 blockchain network capable of handling more than 100,000 TPS, 6 seconds latency, at $0.001 transaction cost. The smart contract platform is focused on fintech, DeFi, and IoT.
Elrond’s economic model has a capped supply and decreasing issuance which encourages furthering scarcity with rising adoption. Elrond’s native token, eGold (EGLD) serves as an excellent collateralization asset courtesy of its intrinsic store of value properties.
Commenting, Beniamin Mincu, CEO, Elrond Network, said:
“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.”
Similar sentiments were echoed by Ryan Matovu, CEO and Founder of Ardana. He said:
“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.”
