Knit Finance & Elrond: Interoperable Synthetics
Virtual assets that retain their basic value are called crypto synthetics, the binding process of which is called tokenization.
This technology has covered many areas of business, including real estate and banking. As an example, we can think of a stock, property, cryptocurrency, or even fiat, which is tokenized like stablecoins.
Tokenization endows these assets with global availability, fractional ownership, trading, lending, smart contract locking, and ease of transfer.
Tokenization allows asset owners to interact with value through available blockchain technologies. Interactions are limited to the corresponding blockchain on which the asset was issued.
Knit Finance is now partnering with Elrond to acquire new assets in the Crypto, Capital and Bullion asset classes and to enable the tokenization itself.
“The tokenization of everything is an emerging mega-trend that will soon engulf all business verticals. The collaboration with KNIT.Finance is part of our efforts to make the global value landscape interoperable and available at internet-scale.”
Elrond CEO, Beniamin Mincu
Our platform is focused on cross-chain synthetic materials to make them available for use cases including trading, lending, profitability and in-chain margin services.
By tokenizing assets, Knit Finance is activating a liquidity pool spanning multiple blockchains, as well as bringing DeFi into multiple chains, which until now has only been possible in Ethereum.
“The Elrond blockchain has some desirable technical properties such as high throughput, low costs, and highly configurable tokens, which we believe our users will find appealing. We’re excited to become a part of the fast-growing Elrond DeFi ecosystem!”
KNIT.Finance CEO, Sainath Gupta.
We rate this collaboration as one of the most important for both projects. It’s worth noting that eGold holders can leverage their assets in DeFi capabilities on other blockchains, allowing them to access a more diverse product landscape.
About KNIT Finance
KNIT.Finance is a unique decentralized protocol that combines synthetics across multiple chains, bridges, and real world markets with yield, lend, trade and margin services through smart contracts and collateralization. This also gives cross chain liquidity aggregation in a completely transparent and 100% verifiable manner. KNIT Finance is a community led initiative. Aims to make different asset classes to be available on multiple chains hence democratizing DeFi and as well create new opportunities for DeFi.
About Elrond
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.
KnitFinance
Elrond Network
