Squid enables one-click cross-chain swaps on Cosmos

Squid uses the decentralized exchange Osmosis to make token swaps; these assets are then routed to the wider Cosmos ecosystem

article-image

CoreDESIGN/Shutterstock modified by Blockworks

share

Squid, a cross-chain liquidity routing and swap protocol, is expanding its one-click swap application to the Cosmos Ecosystem.

The protocol, built on the Axelar network, already powers one-click cross-chain swaps across 12 different EVM blockchains using Axelar’s General Message Passing (GMP). 

Squid connects different decentralized exchanges between chains, co-founder Fig told Blockworks. On EVM-compatible chains, for example, this means connecting Uniswap and Quickswap.

In its expansion to Cosmos, Squid uses the DEX Osmosis to facilitate token swaps. This means users can swap tokens in one click between Uniswap and Osmosis. 

These assets are routed into the wider Cosmos ecosystem through the Inter-Blockchain Communication Protocol (IBC), which enables independent blockchains to communicate with each other.

Part of the reason why Squid made the investment to build this technology in the first place was driven by the migration of dYdX to Cosmos, Fig explained.

“They’re one of the best EVM teams and decided they needed their own app chain to scale their tech and be able to have their own environment, and they needed one click onboarding into that chain from anywhere,” Fig said.

With one-click swaps now available on Cosmos, Fig hopes that users will now have a more efficient and better experience sending transactions between EVM-compatible chains and Cosmos app chains. 

Are cross-chain swaps secure?

Fig and his team at Squid had spent a lot of time looking into security models and chose Axelar because it was one of the most generalizable interoperability layers, he said.

“We were comfortable building on Axelar, and part of Axelar’s technology is that it has IBC built-in,” Fig said. “So we can now use all of IBC’s qualities in the Cosmos natively.”

Squid has contracts on every single chain they deploy on, Fig noted. This means that if there is a fault at any point of a transfer, users will receive their funds back into their account.

Token prices are checked across different chains, and users are provided with a quote before they execute a swap.

“If there’s been a significant slippage, instead of executing at a bad price, it’ll just stop,” Fig said.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member