What bridge does Squid use?
Squid primarily uses Axelar for the majority of its cross-chain operations, enabling seamless asset transfers between different blockchain networks. In instances where Axelar does not support specific connections, Squid uses a carefully selected set of alternative protocols. This approach ensures comprehensive compatibility across a wide range of chains and tokens.
Circle Cross-Chain Transfer Protocol (CCTP)
Circle's CCTP facilitates USDC transfers securely between blockchains networks via native burning and minting. CCTP is operational between the Noble blockchain and other CCTP-compatible networks such as Avalanche, Arbitrum, Ethereum, and Optimism. Consequently, users can move USDC across both EVM-compatible and Cosmos chains without any slippage.
Inter-Blockchain Communication (IBC)
Within the Cosmos ecosystem, Squid leverages existing liquidity (for example, from platforms like Osmosis) to perform token swaps. Additionally, Squid uses the Packet-Forward Middleware for optimizing asset routing over the IBC protocol. This strategy minimizes issues related to liquidity fragmentation, enhancing the efficiency of swaps not only between EVM and Cosmos chains but also across various Cosmos networks.
Discover more about our Cosmos integration and architecture here.