In the dynamic world of Web3, interoperability is key. However, trading assets across different blockchains has been cumbersome and risky. InterSwap, leveraging Axelar, is reshaping this landscape. It offers a seamless, secure, and optimised one-click cross-chain swap and liquidity transportation experience.
TL;DR:
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InterSwap, leveraging Axelar, unifies liquidity, eliminating the need for token bridging.
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This innovative approach enhances user experience, reduces security risks, and streamlines cross-chain trading.
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InterSwap uses Axelar’s primary cross-chain General Message Passing to execute bridgeless cross chain swaps.
The Pain Points
Current cross-chain trading processes are fragmented, inefficient, and risky. Users face challenges with bridging tokens, dealing with multiple intermediaries, and encountering security vulnerabilities. This results in high fees, long wait times, and suboptimal user experiences.
How InterSwap is Solving it with Axelar
InterSwap is eliminating the need for token bridging between chains. This is achieved through InterSwap's 'MasterRouter' contracts on the Axelar Network. These contracts collate liquidity pool states from various blockchains, combining them into a single virtual 'master pool'. This allows for safe processing, less slippage, and up to dated market rates.
Product Structure of InterSwap:
- Single Transaction Cross-Chain Swaps
Users are not required to initiate an additional transaction on the destination chain for receiving assets or paying gas fees. The transaction on the destination chain is automatically generated by the Axelar & InterSwap Router contracts. Users only need to cover the gas fee on the source chain.
- Cross-Chain Liquidity Pools
Liquidity pools are segregated into distinct Lock Contracts on each chain. The MasterRouter contract regulates the state of these pools through Axelar messages, allowing them to function as a cohesive unit while existing across different chains.
- Trustless Cross-Chain Messaging
The InterSwap protocol comprises a series of enduring smart contracts that are non-upgradable and deployed on each supported network. The Axelar network employs Nodes to securely verify and transmit encrypted messages between the supported chains.
How does InterSwap assure security of trades?
On the protocol level:
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Immutable smart contracts: ensure the integrity of the protocol by preventing changes to the architecture.
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A unified liquidity model: eliminates risks linked to outdated bridges by providing liquidity for directly swapped underlying assets.
On the infrastructure level (powered by Axelar):
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Trustless cross-chain communication: Ensuring secure communication between different blockchains without the need for trusted intermediaries.
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MEV resistance: InterSwap implements mechanisms to prevent MEV (Maximum Extractable Value) activities, which involve exploiting pending transactions for profit.
Concluding Note
The integration of InterSwap with Axelar offers several benefits. It provides faster and more economical transactions, boosts liquidity, and enhances security. Users can now trade between different blockchains seamlessly, without the need for bridging tokens improving the overall user experience and reducing the risk of security exploits.
InterSwap, with the support of Axelar, is leading the way in cross-chain trading, offering a revolutionary solution that brings efficiency, security, and ease-of-use to the world of DeFi.