The cryptocurrency users will now be able to use Elrond assets in traditional financing and cross-chain DeFi via ProDeFi. This has been made possible with the partnership of Elrond Network, a blockchain platform, with ProDeFi, a hybrid financing solutions provider.
Cryptocurrency is gaining popularity in internet-based transactions because of its cryptography. To keep track of these types of transactions and cryptocurrency trading, there are several platforms or software available out there, such as the-cryptocomeback.com, that users can use.
What Does Collaboration Mean?
With this collaboration, ProDeFi aims at combining both CeFi and DeFi and making them available for Elrond assets. This will drive DeFi adoption to financing solutions on ProDeFi blockchain. It will further create a much larger userbase than the current DeFi niche. But ProDeFi can address this issue with the help of its protocol-agnostic liquidity pool smart contracts and access to brick & mortar-like solutions.
The cross-chain platform of ProDeFi serves as a settlement layer for DeFi products available from different blockchains. This means a user not only can use their assets as collateral but also can access a $BUSD loan on the Elrond Network. Additionally, they will be able to enjoy the benefits of the DeFi products enabled by the ProDeFi blockchain at the same time.
How Does ProDeFi Work
ProDeFi applies a semi-decentralized approach that works through centralized systems and processes. This enables ProDeFi to balance lending risks with classical mechanisms, for example, KYC procedures, credit risk, and traditional judicial processes.
In the opinion of ProDeFi Co-Founder James Hong, through its continuous collaboration with blockchain sharding technology providers, like Elrond, ProDeFi will be able to improve its DeFi solutions with much enhanced linear scalability and higher throughput. Hong believes that this would allow ProDeFi to serve its users better and give it an edge over other traditional financial systems.
What Does Elrond Think
As a partner in this venture, Elrond aspires to be a high throughput, swift transaction speed, and low transaction fee blockchain platform. It aims at providing efficient and competitive dApp user experiences. Elrond attempts to support a permissionless, borderless, globally accessible internet economy.
Elrond CEO Beniamin Mincu sees this collaboration with ProDeFi in a more promising scenario. He believes that decentralized finance will accelerate transformation in emerging economies and help them switch to FinTech.
Where on the one hand, Elrond wants to become the most suitable platform for machine-to-machine transactions, ProDeFi plans to pave the path for a fully decentralized ecosystem. The collaboration is very visionary, for it will open-up traditional P2P lending markets and enable lenders to use classical finance to blockchain benefits. This will also give lenders the benefit of having broader access to DeFi products under-collateralization or even no collateral at all from the same amount of capital.