We have started working with Elrond to bring new DeFi products for eGold holders. The Bonded platform is built to make use of algorithmic models to unlock, aggregate, and de-risk capital from untapped digital assets.
The collaboration will first focus on making eGold available as a lending and borrowing asset in our inaugural product, Ionic. Formerly known as Accelerated Crypto Loans, the instrument establishes a dynamic market where interest rates are driven by supply and demand for the underlying asset.
Further collaboration will add more assets on the Elrond Network into the products we are building and plan the deployment of Bonded Finance logic on the Elrond blockchain. Through our shared strategic partner Orion Protocol, we will further seek opportunities related to innovative DeFi products involving our unique Smart Contracts model and liquidity from all chains, pools, and exchanges.
“The internet of value can’t happen without bridging the main areas of the market together with its more niche segments, which represent significant amounts of untapped capital. Bonded Finance aims to solve that problem and we’re excited to help them do so at scale.” said Beniamin Mincu, Elrond CEO.
At Bonded Finance, we are creating a platform to algorithmically tap into the alternative coins marketplace and unlock dormant capital. By bundling less liquid assets into index baskets, new lending, borrowing, and other DeFi opportunities are enabled using previously untapped value.
Bonded Finance will work together with our strategic partner Orion Protocol to transact larger quantities of assets and allow more projects to qualify for listing on the Bonded platform, all of which translate into increased activity for the Orion Trade Terminal, which will run on the Elrond blockchain.
“We’ve looked at the eGold token and its surrounding economics, and we find it to be a fantastic asset that combines store of value properties with intrinsic utility for the Elrond high-performance blockchain in a truly unique way. Adding it to our platform will definitely create a positive buzz within our user base.” said Paul Mak, Bonded Finance CEO.
The collaboration is important for our respective ecosystems because it enables additional utility for eGold holders looking to engage with the innovative Bonded Finance products.
Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
The Bonded platform was created to incubate and deploy experimental, high-yield, smart-contract driven, financial instruments that push the bounds of open finance. Bonding is an algorithmic model that aims to unlock, aggregate and de-risk ~50 billion in dormant value distributed amongst untapped digital assets by allowing supporters of qualifying altcoin projects the opportunity to borrow against these assets or pool them and start earning.