The post Squid greases cross-chain liquidity – Blockworks appeared on BitcoinEthereumNews.com.

Squid has unwrapped a decentralized intent-based liquidity protocol that promises cheaper, faster, and more efficient cross-chain swaps. The Cross-Chain Order Routing and Auction Layer (CORAL), which went live today, uses a request-for-quote (RFQ) system, enabling users to execute swaps across chains with minimal costs and near-instant finality.  CORAL’s intents handle swaps natively, unlocking market maker order book pricing similar to CoWSwap. This approach eliminates slippage and ensures optimal execution by directly engaging with liquidity providers during the transaction process. “With CORAL, we’ve removed the borders between chains [to] allow liquidity to flow with minimal friction,” said Fig, Squid’s co-founder. The new protocol builds on the successful Squid 2.0 upgrade, which focused on abstracting away complex cross-chain transaction flows with multiple hops. Read more: Squid sinks its tentacles into cross-chain abstraction One interesting property of the design is that like a zk rollup, the more transactions come through, the cheaper it becomes for the end user. That’s because the architecture allows for batching intents, which “saves a significant amount of gas and delivers users the best execution possible for their swaps,” Fig said.  This makes it “the cheapest decentralized intent protocol” on the market, even edging out market leaders like Across Protocol, he said. By reducing the per-order gas overhead, “as you scale, it becomes basically free.” Across Protocol uses more complex cryptographic batching processes, while CORAL leverages Axelar’s secure general message-passing protocol. Like Across, this approach pushes all bridge and routing risks to market makers, who handle the backend complexities of asset transfers. Users receive native assets on their destination chain, eliminating the need for wrapped tokens or trust in external validators. CORAL’s flexibility goes beyond swaps. It allows developers to build complex DeFi applications using pre- and post-hooks, enabling actions like depositing cross-chain-swapped assets into yield farms with one…

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Filed under: News - @ December 4, 2024 3:27 pm