Cardano ($ADA) Powered DeFi Hub Building Cardano-Elrond Bridge Infrastructure
Cardano-powered DeFi Ardana has announced a long-term partnership with high-throughput layer 1 blockchain Elrond ($EGLD), as the result of which Ardana “will build the bridge infrastructure required for asset transfer between Cardano and Elrond.”
Ardana is “a decentralized stablecoin hub which will bring the necessary DeFi primitives needed to bootstrap & maintain any economy to Cardano”.
Ardana currently has two main components:
- A fully decentralized dollar-pegged stablecoin named dUSD “verifiably backed by on-chain collateral” that allows “borrowers to take leverage on their ADA or other supported assets.”
- An automated market maker (AMM) decentralized exchange named Danaswap for stable multi-asset pools. Danaswap is “highly capital efficient enabling swaps with minimal slippage while providing low-risk yield opportunities for liquidity providers.”
According to a blog post by Ardana published on October 7, the bridge infrastructure it is building will enable connecting the ecosystems of Cardano and Elrond, thereby “enabling token transfers between the Elrond mainnet and Cardano compatible chains, and later on enable cross-chain smart contract functionality.” This means that Elrond’s native token eGold ($EGLD) will “eventually be available as an asset on Cardano and will be usable as collateral on Ardana to mint stablecoins.”
Beniamin Mincu, the CEO of Elrond Network, stated:
“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.“
And Ryan Matovu, Founder and CEO of Ardana Labs, had this to say:
“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.“
Disclaimer
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Image Credit
Featured image courtesy of Ardana Labs, Inc.
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