Squid’s support for Arbitrum marks a new milestone for DeFi interoperability

03/06/2023 05:18 • AI & Tech Insights • 65 views

On March 6, it was reported that the DeFi liquidity protocol Squid based on Axelar now supports Arbitrum. Users can exchange tokens between the Arbitrum network and the main EVM chain.

DeFi Liquidity Protocol Squid now supports Arbitrum

Interpretation of the news:

The DeFi ecosystem is continuously growing, and new blockchain projects emerge to enable users to access a wide range of blockchain-based services. However, this entails challenges concerning interoperability, as different blockchains employ various consensus mechanisms, network designs, and technological foundations. Consequently, one of the most significant hurdles for the DeFi market is the inability for different protocols to communicate and exchange assets freely. This means that those who want to access features on different blockchains need to undergo a time-consuming and convoluted process of migrating assets, making it difficult for DeFi to catch on in the mainstream market.

Against this backdrop, Squid, a highly innovative liquidity protocol based on Axelar, has become one of the key players in the race to bring DeFi interoperability to the masses. Recently, on March 6, it was reported that Squid has integrated with Arbitrum, a highly anticipated layer 2 solution that utilizes the EVM as its core design. With this integration, users can seamlessly exchange assets between the Arbitrum network and the Ethereum main chain.

The integration of Squid and Arbitrum is an important milestone for DeFi as it marks a significant step towards achieving the interoperability the sector needs to grow. With this integration, users on the Arbitrum network can access a comprehensive suite of DeFi services provided by protocols operating on the Ethereum main chain. This move gives greater versatility to DeFi investing, as users can access multiple blockchain services across a wide range of networks, promoting greater dexterity of DeFi investments.

Moreover, this move solidifies the position of Axelar, the blockchain infrastructure provider that powers Squid, as a key player in the development of blockchain interoperability solutions. Axelar’s technology was designed to enable different blockchain protocols to communicate seamlessly, solving the problem of cross-chain connectivity. Thus, with the launch of Squid, Axelar has effectively demonstrated that it is possible to develop blockchain infrastructure that reduces the level of friction and inefficiency that characterizes DeFi trading currently.

In conclusion, Squid’s support for Arbitrum marks an important milestone for DeFi as it facilitates greater synergy between different DeFi protocols operating on different blockchain infrastructures. This move signals the beginning of what could be a new era of DeFi interoperability, making DeFi more accessible and more user-friendly for the masses.

Summary:

Squid, a DeFi liquidity protocol based on Axelar, has integrated with Arbitrum, a layer 2 solution that offers EVM computation as part of its design. This integration offers users greater access to DeFi services across a variety of blockchain networks, promoting greater dexterity of DeFi investments. Squid’s integration with Arbitrum marks an important milestone for DeFi interoperability, signaling the beginning of what could be a new era of seamless blockchain connectivity.

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Squid’s support for Arbitrum marks a new milestone for DeFi interoperability

DeFi Liquidity Protocol Squid now supports Arbitrum

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