Exploring Cross-Chain Interoperability: A Spotlight on Axelar and Mento Labs Partnership
December 15 2023
by Victoria Calmon
Achieving seamless connections between different blockchains is a significant challenge due to diverse protocols, consensus mechanisms, and cryptographic standards, creating barriers to direct communication. Axelar, a Web3 interoperability platform connecting different blockchains and enabling cross-chain communication, stands out for its mission of becoming the internet infrastructure for advanced applications. By connecting over 50 blockchains securely, Axelar aims to simplify interactions with digital assets and provide a unified environment for developers.
Axelar’s Solutions
Axelar's approach is grounded in simplicity and effectiveness. The platform facilitates scalable cross-chain solutions, allowing users to interact with any asset in a single click. Developers, irrespective of the blockchain they are working on, experience a unified environment supported by a straightforward API and a permissionless ecosystem of tools and service providers. Axelar's AXL token, using Proof-of-Stake (POS), ensures network security, allowing for cross-chain programmability. One prominent feature is General Message Passing (GMP), which enables the transmission of data to more blockchains than other networks
Partnering with Mento Labs
In the collaborative efforts between Axelar and Mento Labs, Squid takes center stage. Squid, developed by Axelar, serves as a versatile cross-chain solution, allowing any token to be swapped between blockchains effortlessly. Acting as a bridge between different blockchains, Squid simplifies the process of redeeming or selling digital assets, exemplified by converting USDC on Ethereum to cUSD on Celo. The partnership between Mento and Squid empowers a unique capability of handling Mento stablecoins. By directly routing through the Mento Reserve and bypassing reliance on any DEX pools, the partnership eliminates limitations on the transaction volume. This results in no slippage, rendering the process highly efficient.
To utilize Squid, users connect their wallets and gain access to Axelar’s General Message Passing. The interface allows users to select the asset to send, the desired asset to receive, and displays critical information such as exchange rates, estimated amounts, and associated fees. In this regard, Squid is an integral part of Mento Labs' toolkit, empowering developers to build seamless user experiences by tapping into cross-chain liquidity and scaling applications to reach users across various blockchain networks.
Next Steps
Looking ahead, there are potential opportunities for Mento's Stablecoin Factory, a no-code toolkit for launching new assets in a permissionless and decentralized manner, to leverage Axelar's interchain token service. This collaboration could enable all stablecoins produced by the Stablecoin Factory to be cross-chain enabled from day one.
For more information:
Squid: www.squidrouter.com
Follow @squidrouter
Axelar: axelar.network
Follow @axelarnetwork
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