Squid’s One-Click Cross-Chain Swaps Expands to Cosmos Ecosystem
Squid, the cross-chain liquidity routing and swap protocol, is broadening its one-click swap application to include the Cosmos Ecosystem.
This protocol, constructed on the Axelar network, is already powering one-click cross-chain swaps across 12 diverse EVM blockchains through Axelar’s General Message Passing (GMP).
Squid acts as a bridge between various decentralized exchanges on different chains. For EVM-compatible chains, this translates to connecting platforms like Uniswap and Quickswap.
In its extension to Cosmos, Squid leverages the DEX Osmosis for facilitating token swaps. This enables users to perform token exchanges with a single click, seamlessly moving between Uniswap and Osmosis.
Squid’s One-Click Swaps Now Available in Cosmos: Enhancing Cross-Chain Transactions
These assets are channeled into the broader Cosmos ecosystem via the Inter-Blockchain Communication Protocol (IBC), which facilitates communication among independent blockchains.
Fig, one of Squid’s co-founders, noted that the decision to develop this technology was partly motivated by dYdX’s migration to Cosmos. dYdX, an EVM-focused team, opted to create its own app chain on Cosmos, necessitating a seamless onboarding process.
With one-click swaps now accessible within the Cosmos network, Fig anticipates that users will enjoy a more efficient experience when conducting transactions between EVM-compatible chains and Cosmos app chains.
Security of Cross-Chain Swaps
Fig and the Squid team have diligently examined security models and selected Axelar for its robust interoperability features.
Seamless Cross-Chain Transactions for Enhanced User Experience
“We were comfortable building on Axelar, and part of Axelar’s technology is that it has IBC built-in,” Fig explained. “So we can now use all of IBC’s qualities in the Cosmos natively.”
Squid has established contracts on every chain they deploy on, providing users with the assurance that in case of a transfer failure, their funds will be promptly returned to their account.
The protocol checks token prices across various chains and provides users with a quote before they finalize a swap. In cases of significant price slippage, the transaction is halted, preventing users from executing trades at unfavorable rates.