Excessive-throughput blockchain platform Elrond is delving deeper into decentralized finance with its newest providing which is able to tokenize treasured metals.
Elrond has gone into partnership with U.Okay. fintech agency Aurus that facilitates the tokenization of treasured metals and commodities.
Three tokens for gold, silver, and platinum — AWG, AWS, and AWP — can be issued on the Elrond blockchain as ESDT tokens. The trio of commodity-based tokens can be backed by one gram of the respective treasured metallic, in response to an announcement, which added:
“This opens essential alternatives for decentralized finance (DeFi) individuals to interact with secure currencies of a unique variety, ones which might be pegged to treasured metals as an alternative of fiat currencies.”
Gold backed DeFi
The dear metal-backed tokens can be made out there on Elrond’s Maiar alternate and automatic market maker, which was unveiled in April.
Elrond added that the collaboration may even pursue the deeper integration of Aurus tokens into its present merchandise. This would come with utilizing the commodity-backed tokens as collateral for borrowing and lending, or presumably even launching new stablecoins primarily based on them.
Elrond Community CEO, Beniamin Mincu, mentioned that conventional belongings equivalent to gold and silver will gain liquidity by way of DeFi:
“Blockchain know-how will improve conventional store-of-value belongings by making them extra liquid, safe, and cheap to personal and switch. We’re wanting ahead to seeing the artistic DeFi use instances for the merchandise Aurus will carry to the Elrond mainnet.”
Elrond is a high-speed blockchain that makes use of adaptive state sharding and a safe proof-of-stake algorithm. It permits linear scalability and upwards of 15,000 transactions per second with six-second latency, and negligible price, in response to the blurb on the official web site.
In April, the favored Polkamon non-fungible token assortment migrated to the Elrond network to boost the person expertise and scale back prices.
EGLD token value outlook
Elrond’s native token, EGLD, has declined 4% on the day. On the time of writing, EGLD was altering fingers for somewhat over $90.
Like most DeFi-related altcoins, EGLD has taken an enormous hit from its all-time high, this year. On April 12, the token hit $244, and right now it’s 63.5% off that focus on.
There are at present 18 million tokens in circulation giving Elrond a market capitalization of $1.6 billion. This ranks it at 62 out there cap charts, slightly below THORchain’s RUNE.