Ahead of its mainnet launch on July 30, scalable blockchain platform Elrond (ERD) today announced its integration with inter-blockchain swaps protocol Swingby to facilitate seamless exchange of ERD and other Elrond mainnet assets with prominent digital tokens such as bitcoin (BTC), ether (ETH), and Binance coin (BNB).
Cross-Chain Liquidity for Frictionless Token Exchange
The collaboration will see Elrond leverage Swingby’s inter-blockchain asset swaps to enable uninterrupted cross-chain blockchain asset exchange. Notably, the non-custodial, decentralized protocol works with all digital wallets.
Targetting the exponentially growing decentralized finance (DeFi) landscape, Elrond looks to cater to the DeFi application and components’ need for an infrastructure that offers high liquidity with minimal friction. The protocol’s creative approach to tackling some of the most evident bottlenecks of blockchains, including scalability, places it among the frontrunner DLT projects that promise to scale in tandem with the increasing number of users joining the digital assets ecosystem.
Commenting on the development, Elrond CEO, Beniamin Mincu, noted:
“Getting access to all the available liquidity from day 1 is an important prerequisite for anyone building DeFi tools. This integration enables Elrond to be part of many existing cross-chain DeFi applications. We’re excited to work with Swingby and increase access to Elrond’s highly scalable and cost-effective solution.”
A Promising Alliance
Swingby is in the works to implement the “first-ever truly decentralized custodian inter-blockchain protocol” which has its roots in recent research on fast multiparty threshold signature schemes. In essence, this protocol could enable a decentralized set of anonymous participants to jointly sign transactions across multiple chains.
According to the announcement, the successful deployment of the aforementioned research holds the potential to bring about a first-of-its-kind protocol that can aid in the implementation of a trustless 2-way peg with BTC and its forks, thereby pitting Elrond ahead of its competition.
DeFi Continues to Gain Traction
DeFi has dominated the better part of 2020 and only seems to be snowballing into a bigger phenomenon in the industry by offering users a reliable and trustless alternative to traditional financial institutions.
A horde of blockchain projects, including Elrond, is vying to make DeFi accessible to new users who might not necessarily be aware of the nitty-gritty of the emerging space.
As reported by BTCManager on July 3, Justin Sun-led Tron (TRX) launched three new DeFi-focused products, marking the project’s entry into the nascent space.
That said, not all is hunky-dory with DeFi, as one of Ethereum’s co-founders, Vitalik Buterin recently expressed concerns pertaining to the “yield farming” frenzy that has taken the DeFi landscape by storm.
Similarly, in June, DeFi protocol Balancer Labs was exploited by cybercriminals who managed to steal more than $500k worth of crypto assets from its token pools.