Elrond and Ardana joined hands to promote EGLD’s collateralization operations. The integration will help EGLD be counted as foremost among the cross-chain assets that help to collateralize the stablecoins released on Cardano using Ardana.
The announcement came recently after Elrond established a partnership with Composable Finance. The network is experiencing a quick popularity boost with such collaborations, making traders look for an Elrond price prediction.
Ardana is developing a DeFi framework for Cardano that will assist the issuance of crypto-based dUSD stablecoins. Moreover, the infrastructure will facilitate decentralized trading on the Danaswap decentralized exchange AMM platform.
Elrond aims to make EGLD one of the first non-native digital assets on the Cardano network with the partnership. After the integration, customers can use EGLD as collateral for minting dUSD. Users can access the facility by migrating EGLD from Elrond to Cardano via a two-way bridge. Ardana will deploy the bridge after collaborating with Elrond.
The network has long-term plans for the partnership, like migrating other assets on the two blockchains. In addition, it will help users leverage the assets in DeFi prospects available on both Cardano and Elrond.
Beniamin Mincu (Elrond Network’s CEO) stated that exploring the possibilities of collateralizing a stablecoin on one chain via another network’s native coin is an ideal start for interoperability. Establishing such a connection between two growing worldwide ecosystems proves how far innovation and performance can still go.
Ryan Matovu, the founder and CEO of Ardana, also commented on the development. According to him, eGold is a scarce resource with limited supply, and its demand is skyrocketing currently. Ardana is delighted to address the challenge by making the asset available to the Ardana community. It will offer them more alternatives to release dUSD, which is restricted by strong assets that offer lower over-collateralization.
Elrond is quickly climbing the market ranks with such esteemed collaborations. In addition, the partnerships are helping the DeFi sector and the Elrond community explore new alternatives.