Gold and Silver backed DeFi to be launched By Elrond
Elrond, a High-throughput blockchain platform is doing in-depth research in the field of decentralized finance and thus topping precious metals with its latest offer by introducing them as tokens.
Elrond has partnered with a UK fintech company Aurus that facilitates the tokenization of precious metals and commodities.
Going with this news, the three new tokens for gold, silver, and platinum – AWG, AWS, and AWP – are given as ESDT tokens on the Elrond blockchain. One gram of precious metal supports three item-based tokens, according to a statement by the token distribution firm.
While this also opens up crucial opportunities for decentralized finance (DeFi) and their partners to engage with a wide variety of fixed currencies, moving to precious metals instead of fiat currencies.”
As of now, these precious-metal-based tokens are available at Elrond’s Maiar Exchange and automated market maker.
Elrond said the collaboration will also follow the in-depth integration of Aurus tokens with the existing market products. This may include the collateral use of commodity-backed tokens for borrowing and lending, or for the introduction of new stablecoins based on them.
Benjamin Mincu the CEO of Elrond Network CEO said: “DeFi will make money on traditional assets such as gold and silver as;
“Blockchain technology makes traditional store-of-value assets more fluid, more secure to own, and easy to manage and transfer.
Elrond is a fast blockchain that uses adaptive status sharpening and safe proof of stake algorithm. According to Blurb, it allows linear scalability, and about 15,000 transactions per second, six seconds delay, and minimal cost.
And thus considering the technology, in April the popular Polkamon non-fungible token collection was moved to the Elrond Network to improve the user experience and reduce transfer and transactions related costs.
Related: What are Non Fungible Tokens (NFTs)? Beginner Guide
While talking about profits like most altcoins associated with DeFi, this year EGLD experienced great success from All-Time High. The token reached $244 on April 12, and while today it is 63.5% off that target.
There are currently 18 million tokens in circulation, giving Elrond a market capitalization of $1.6 billion. The Currency currently ranks 62nd on the market cap charts just below THORchain’s RUNE.
Read also: Wyoming Became First legally recognizes DAO in the United States
